Solana Breaks Critical Support: Is Bigger Drop Coming for SOL?

Solana breaks critical support, sparking concerns of a bigger drop. The asset's price sits on an upward trendline, and losing it could trigger massive sell-offs.

Solana's Technical Weakness

Solana's price has been unable to clear its technical ceiling, with multiple rejections in the $90 zone. This confirms a solid ceiling defended by sellers in the SOL/USDT pair. The RSI is starting to lean toward oversold territory on the 6-hour chart, increasing the probability of a bearish resolution.

Downside Targets

Technical analysts point out that a confirmed breakout would pave the way toward the support range between $85 and $82. This level has historically served as a base during previous pullbacks.

Market Analysis

The divergence between trading volume and previous recovery attempts is concerning. With market capitalization under pressure, the probability of a bearish resolution increases if the current dynamic support level fails to attract new institutional demand. Bybit chart analysis reveals that Solana is trapped in a narrowing structure, despite maintaining a series of higher lows since late February.

Liquidation Levels

Recent reports reveal that the margin of error for bulls has been reduced to a minimum, suggesting that any sustained close below the current trend would invalidate the existing consolidation structure. Consequently, the market is closely watching the $82 zone, a level that has historically served as a base during previous pullbacks.

Key Takeaways

• Solana breaks critical support, sparking concerns of a bigger drop.
• The asset's price sits on an upward trendline, and losing it could trigger massive sell-offs.
• Downside targets include the support range between $85 and $82.
• The market is closely watching the $82 zone, a level that has historically served as a base during previous pullbacks.

Frequently Asked Questions

What is the current trendline for Solana?

Solana's price sits on an upward trendline started in February, and losing it could trigger massive sell-offs.

What are the downside targets for Solana?

Technical analysts point out that a confirmed breakout would pave the way toward the support range between $85 and $82.