Solana Hits Critical $137 Support: Can Bulls Prevent A Breakdown?
03 Ottobre 2024 - 7:00PM
NEWSBTC
Solana has hit the key $137 support level, and the bulls are now
facing intense pressure to prevent a downward breakout. With the
market momentum hanging in the balance, all eyes are on whether the
bulls can defend this critical zone and spark a potential rebound.
A strong defense at this level could signal renewed bullish
strength, while a breakdown 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 whether the bulls can withstand increasing pressure. It
will evaluate the potential for either a breakout or a rebound,
offering insights into SOL’s short-term price direction by delving
into key technical indicators and market sentiment. Analyzing the
RSI And Moving Averages: Bullish Or Bearish Outlook? Recently,
after struggling to break above the $164 resistance level, Solana
has adopted a negative trajectory on the 4-hour chart. The price is
currently trading below the 100-day Simple Moving Average (SMA),
suggesting a shift in market sentiment, as SOL now targets a
potential bearish breakout at the $137 level. If the price
continues to decline and breaches this support, it could trigger
extended selling pressure and open the door to additional losses.
Also, an analysis of the 4-hour Relative Strength Index (RSI)
reveals that the RSI has fallen to around 33%, indicating that the
buying pressure is diminishing, reflecting a shift in market
dynamics. An RSI below 40% often signifies that an asset may be
entering oversold territory, which can lead to potential further
declines. Related Reading: Solana (SOL) Failure To Break $154 Could
Lead To $85 Correction – Analyst On the daily chart, SOL is
displaying notable negative movement, evident from a series of
bearish candlesticks. This persistent downward trend underscores
the prevailing selling pressure in the market, indicating that
bears are firmly in control. Additionally, Solana is trading below
the 100-day SMA, suggesting a lack of bullish momentum and
reinforcing the likelihood of continued declines. Finally, on the
1-day chart, a closer look at the RSI formation shows that the RSI
signal line has fallen to 43%, having recently breached the crucial
50% threshold. An RSI reading below 50 typically reflects a bearish
sentiment, signaling that the asset is losing strength. Such a drop
could imply further downside potential for SOL unless a reversal
occurs. Key Support Level At $137: Can Solana Bulls Hold The Line?
The $137 support level is crucial for Solana, representing a
significant battleground between bulls and bears. If bulls succeed
in defending this support, it could instill confidence in the
market and pave the way for a potential recovery toward the $164
resistance level. Related Reading: Solana (SOL) Could Crash 40% If
It Stays Below $140 – Top Analyst Shares Insights Nonetheless, a
breach below the $137 support level could trigger significant
selling pressure, resulting in additional declines toward the $118
support level. When this level is breached, it may lead to more
losses, with potential targets including lower support areas around
the $99 mark. Such a scenario would intensify bearish sentiment and
could lead to a more pronounced downtrend in Solana’s price.
Featured image from Unsplash, chart from Tradingview.com
Grafico Azioni Solana (COIN:SOLUSD)
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Da Ott 2024 a Nov 2024
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Da Nov 2023 a Nov 2024