Solana Price Trends: What’s Happening?
Solana (SOL), one of the leading large-cap cryptocurrencies, has experienced a 5.3% drop within the last 24 hours, extending its 30-day losses to over 27%. While the short-term outlook appears bearish, several indicators suggest that a turnaround may be on the horizon.
Bearish Crossovers Loom
Solana’s current price trends are influenced by two significant bearish crossovers forming on the daily chart. These crossovers — where short-term Exponential Moving Averages (EMAs) dip below longer-term EMAs — traditionally indicate increasing selling pressure.
- The 50-day EMA is close to crossing beneath the 100-day EMA.
- The 20-day EMA is nearing a drop below the 200-day EMA.
Historically, such combinations have led to further declines before forming a new base. However, maintaining the $155 key support level could trigger a bounce towards resistance levels at $191 or even $200.
On-Chain Data Signaling Stability
Despite the bearish technical signals, on-chain metrics offer a glimmer of hope. For example, Solana’s Holder Net Position Change indicates an 87% decline in net outflows within 30 days. This suggests that long-term holders are not cashing out heavily, even amidst recent market fluctuations.
Further, data from derivatives platforms like Bybit reveals that the ongoing correction is primarily driven by a long squeeze, rather than fresh bearish bets. With most leveraged long positions already liquidated, the potential for a short squeeze is growing, which could lead to a temporary price recovery.
Key Levels to Watch
Currently, Solana is trading around $166, holding just above its strong support zone at $163. Should this level break, the next critical support lies at $155. On the flip side, resistance levels at $180 and $191 could lead to relief rallies, with a potential sharp breakout pushing prices towards the $200-$222 range in an optimistic scenario.
How Can SOL Investors Take Strategic Steps Now?
For investors looking to stay informed and ahead of trends, analyzing both on-chain data and technical patterns is crucial. Given the current positioning of Solana, short-term trades may require caution, while long-term holders can rely on the relatively stable holding data to inform their decisions.
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As with any investment, it’s essential to stay informed and consider consulting a financial expert before making strategic decisions.
