Solana (SOL) is hovering within a critical support zone between $125 and $110, a range that could dictate its next major price move. With the broader crypto market experiencing heightened volatility, SOL’s ability to maintain this level will be a crucial test of investor sentiment.
Solana’s Technical Outlook
Renowned crypto analyst Ali Martinez has identified the $125–$110 range as a key support area for Solana. A successful hold above this level could set the stage for a recovery, potentially targeting resistance at $140 and $150. However, a breakdown below $110 might pave the way for further declines, with SOL possibly testing the $95–$100 region.
For a strong bullish confirmation, SOL would need to reclaim its 50-day Simple Moving Average (SMA) at $188.74, shifting momentum in favor of buyers. However, market sentiment remains uncertain, with technical indicators leaning bearish.
- The Relative Strength Index (RSI) sits at 35.11, hovering near the oversold zone, suggesting a potential relief bounce but also signaling weak bullish momentum.
- The Moving Average Convergence Divergence (MACD) remains in bearish territory, indicating sustained selling pressure.
- The On-Balance Volume (OBV) at 63.75M has been declining, reflecting reduced buying interest and weak volume support for a significant reversal.
Declining Futures Open Interest Raises Concerns
Futures traders appear to be losing confidence in SOL. Since early March, Open Interest (OI) in Solana futures has dropped by 19%, signaling reduced speculative interest. This decline coincided with a sharp price drop, indicating traders closing positions amid growing uncertainty.
Several macro and crypto-specific factors contributed to this downtrend:
- Solana faced strong resistance near $180, triggering profit-taking.
- The U.S. government’s crypto reserve plans led to market-wide selling.
- The looming FTX estate token unlock has fueled concerns over increased supply.
What’s Next for Solana?
If Solana manages to hold above $125, it could signal an accumulation phase, potentially leading to a recovery. A broader market rebound, particularly in Bitcoin and Ethereum, could provide additional bullish momentum, pushing SOL toward the $150–$160 resistance zone.
Also Read: Solana (SOL) Plunges to $130: Buy Signal or Bull Trap?
On the flip side, a decisive break below $110 could accelerate sell-offs, with key downside levels at $100 and $85. With market sentiment still shaky, investors should watch SOL’s price action closely to gauge its next move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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