Solana reached the key support level at $137, and bulls now face intense pressure to prevent a downside breakout. With market dynamics in play, all eyes are on the bulls’ ability to defend this critical zone and trigger a potential rebound. Strong defense at this level could signal further bullish strength, while a breakout could pave the way for further declines.
As traders anticipate Solana’s next move, this article aims to explore its crucial test at the $137 support level, focusing on the bulls’ ability to withstand mounting pressure. It will assess the potential for a breakout or rebound, providing insight into SOL’s near-term price direction by examining key technical indicators and market sentiment.
Analyze the RSI and moving averages: bullish or bearish outlook?
Recently, after struggling to breach the $164 resistance level, Solana adopted a negative trajectory on the 4-hour chart. The price is currently trading below the 100-day simple moving average (SMA), suggesting a change in market sentiment as SOL is now targeting a potential downside breakout at the $137 level. If the price continues to fall and breaks through this support, it could trigger prolonged selling pressure and open the door to further losses.
Furthermore, an analysis of the 4-hour relative strength index (RSI) reveals that the RSI has fallen to around 33%, indicating that buying pressure is decreasing, reflecting a change in market dynamics. An RSI below 40% often means an asset may be entering oversold territory, which can lead to potential further declines.
On the daily chart, SOL shows notable negative movement, evident through a series of bearish candlesticks. This persistent downtrend highlights the prevailing selling pressure in the market, indicating that the bears are firmly in control. Additionally, Solana is trading below the 100-day SMA, suggesting a lack of bullish momentum and strengthening the likelihood of continued declines.
Finally, on the daily chart, a closer look at the RSI formation shows that the RSI signal line has fallen to 43%, having recently crossed the crucial 50% threshold. An RSI below 50 generally reflects bearish sentiment, signaling that the asset is losing strength. Such a decline could imply further downside potential for SOL unless a reversal occurs.
Key Support Level at $137: Can Solana Bulls Hold on?
The $137 support level is crucial for Solana, representing an important battleground between the bulls and bears. If the bulls manage to defend this support, it could restore confidence to the market and pave the way for an eventual recovery towards the $164 resistance level.
Nonetheless, a break below the $137 support level could trigger significant selling pressure, leading to further declines towards the $118 support level. When this level is breached, it may lead to more losses, with potential targets including lower support zones around the $99 mark. Such a scenario would intensify bearish sentiment and could lead to a more pronounced downward trend in Solana price.
