As Solana revisits the $160 level amid rising supply pressure, the bearish sentiment surrounding SOL’s price trend warns of a potential massive crash. Will the downfall push SOL to $106?
Solana is gaining bearish momentum by hitting its 3-month low price at $160. With four consecutive bearish candles in the daily chart, the trendline breakdown rally puts significant pressure on the $160 supply zone.
With a low price rejection and an intraday recovery of nearly 1%, bulls are clinging for a potential bounce back. Will short-term crypto market stability provide Solana an opportunity to reclaim the $200 psychological mark? Let’s find out.
SOL Price Trend Hits 3-Month Low at $160
In the daily chart, the SOL price trend reveals a massive surge in bearish momentum after the bullish failure on January 19, creating an all-time high of $295. Solana failed to sustain the bullish momentum, leading to a quick turnaround from the $260 supply zone.
The high-momentum Solana move broke below the long-coming support trendline, significantly increasing the bearish pressure over the $170 demand zone. As the short-term conditions reflect a high possibility of a breakdown rally, the lower price rejection on daily candles hints at a potential bounce back.
Currently, Solana is trading at a market value of $170, with an intraday recovery of nearly 1%. Despite the low price rejection, the technical indicators suggest a bearish continuation.
The contraction of the upper and lower Bollinger Bands indicates decisive bearish momentum. With the current Doji candle, bulls are hoping for a potential morning star pattern to form.
Solana Faces Negative Comments Amid Slow Growth
Solana’s declining social sentiment warns of a massive retracement. According to a recent tweet from Santiment, traders are expressing frustration over the ongoing downfall.
Furthermore, 11.9% of crypto discussions are about Solana, the highest since January. With increasing discussions and rising negative sentiment, Solana’s downfall seems imminent.
Whale Actions Suggest Long-Term Confidence
Despite the chances of downfall, a whale remains optimistic and buys the dip in Solana. A newly created wallet acquired 87,328 SOL tokens worth nearly $15 million.
After acquiring the tokens from Binance, the whale remained inactive, reflecting strong confidence in Solana’s long-term potential. While whale accumulation often signals a potential recovery, the ongoing bearish momentum remains a major concern.
Key Supports To Watch as Solana Crashes
Currently, Solana clings to the S1 pivot support level at $168. Based on price action analysis and pivot points, a closing price under $168 will likely result in a massive plunge to $106.
However, any bullish comeback would likely face resistance near the $200 psychological mark.
On a more optimistic note, the center pivot level at $231 could be the next price target if the uptrend regains momentum.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
