Solana’s (SOL) price declined below the vital support price of $100 on Thursday, an area that has been crucial in defining major corrective phases for the cryptocurrency asset in the past.
The price movement indicates the selling pressure on the cryptocurrency, and it remains uncertain whether the asset can continue its decline or not.
The token is currently trading at $92.32, according to CoinMarketCap data. The price has declined by 4.68% in the last 24 hours and has fallen by 24.88% in the past week. The sentiment in the crypto market remains uncertain.
Source: CoinMarketCap
SOL Breaks Two-Year Uptrend
Analyst Dami Defi pointed out that Solana has now lost its two-year uptrend. He explained that this trendline had been tested several times prior to the week’s breakdown. “Repeated rejections at the $200 to $280 zone have resulted in lower highs, now placing this level in a confirmed downtrend.”
He also noted that “any rallies above $100 should be considered relief rather than the start of a new trend.” He also identified $70 as the next level to watch for the coin, followed by $50 if the pressure continues.
Source: X
Dami also said that the token now has only one signal left to be bullish. “SOL needs to close above $100 and recover above the broken trendline.”
Also Read: SUI Falls Below $1.10 as Bearish Momentum Intensifies
Moreover, another analyst, Analyst Coin Signals, mentioned the growing bearishness in the SOL. He noted that the token has been pushed below the 200-Week EMA and has also broken down from an important two-year support area. The next target area is between $50 and $60, an area previously a long-term demand zone.
Source: X
Volume Rises as Open Interest Falls
CoinGlass data shows an increase in market activity in Solana. The volume increased by 34.58%, reaching $23.57 billion, while the Open Interest declined by 3.85%, reaching $6.40 billion. The token OI Weighted Funding Rate is at 0.0070%, indicating increased volatility.
Source: CoinGlass
Liquidations were also up. Total liquidations hit $73.77 million over the last 24 hours. Long positions recorded $66.43 million in losses. On the other hand, short positions were at $7.34 million.
Source: CoinGlass
Cryptocurrency is currently trading at an important technical area. Analysts are watching to see if it will hold or move further down to deeper support zones.
