On Monday, Feb 23, Solana (SOL) continued its decline as its price fell to $78.57. The decline recorded 7.62% in 24 hours. The trading volume has increased by 56.93% and is currently standing at $3.26 billion, according to CoinMarketCap data.
Source: CoinMarketCap
SOL Approaches Crucial Support on Lower Timeframe
Analyst CryptoPulse highlighted that Solana is testing major 4H support levels. The price is moving into the support zone of $76, which acted as a demand zone in previous trading sessions. The zone has significant reactions before and may react positively if the support level holds.
The analyst added that if the price bounces back from this zone, it may move towards $85 or even $88. However, this will depend on whether or not buyers hold this zone.
Source: X
Moreover, another analyst, Man of Bitcoin, outlined the next important threshold. He mentioned that the key level to keep the wave-4 structure intact sits at $61.64. He also stated that SOL must remain above $68.02 for an ABC corrective rally to stay valid on the chart.
Source: X
RSI and MACD Highlight Ongoing Bearish Pressure
The Relative Strength Index (RSI) (14-period) for the token stands at 32.64, while the RSI signal line is at 33.51. This suggests that the coin is trading near the oversold zone, and its momentum is weakening further. The RSI reading below 50 confirms the dominance of selling pressure in the market trend.
Also Read: Solana Stabilizes Above $80 as $90 Break Confirms Momentum Shift
The Moving Average Convergence Divergence (MACD) indicator shows the MACD line is at -7.66, while the signal line sits at -8.93. The histogram is printing at 1.27, which suggests bearish momentum weakening further. The MACD line is below the signal line, this suggests that there has been no bullish crossover.
Source: TradingView
Market Bias Shifts Bearish for SOL
Market positioning remains cautious, with CoinGlass data showing the long-to-short ratio of SOL at 0.89, reflecting a bearish bias. The reading below 1 suggests that more traders expected the price to fall.
Source: CoinGlass
Funding rates for SOL turned negative, with the funding rate shifting below zero on Saturday, reaching a reading of -0.0245% by Monday. Negative funding meant short positions were paying long positions, signaling ongoing bearish sentiment.
Source: CoinGlass
Cryptocurrency has been trading at levels near its highlighted support zones. Analysts had pointed out these levels as areas of support, and pressure has been building. The upcoming days will determine if the token finds support or if selling persists.
Risk Disclosure: This article is for informational purposes only and does not constitute financial advice.
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