Solana (SOL) Tumbles 6%: Can Bulls Halt the Freefall, or Do Bears Truly Hold the Reins?

• Solana is trading within the $133 range.
• SOL’s trading volume has jumped by over 126%.

With a 2.57% loss, the crypto market is floating in red, and the assets are losing momentum. The neutral sentiment is hanging across the market, as the Fear and Greed Index value is holding at 45. All the major assets are moving downward, unable to escape the bear trap. Among the altcoins, Solana (SOL) has posted a 6.12% loss. 

In the early hours, Solana traded at a high range of $143.06, and the sudden bearish pressure has triggered the price toward a bottom of $132.82. Currently, Solana is trading at around $133.73, with its daily trading volume jumped by 126% to $5.1 billion. The SOL market has witnessed a 24-hour liquidation of $60.89 million. 

SOL price (Source: CMC)

The recent price graph of Solana hints at a downtrend. With the formation of the death cross, the price slips to the support at $130.21. Breaking past this level might push for a deeper slide below the $127.10 mark. On the upside, if SOL bulls regained power, the price could rise to $136.47. With extended gains, the golden cross would take place, potentially eyeing its subsequent resistance at around $139.68.

Solana Momentum Slips as Indicators Lean Negative

SOL’s Moving Average Convergence Divergence (MACD) line and signal line have fallen below the zero line, reflecting a bearish shift. The asset currently trades below its longer-term average, showing downward strength. A crossover above zero brings in early signs of a potential trend reversal. 

SOL chart (Source: TradingView)

Besides, the Chaikin Money Flow (CMF) indicator resting at -0.11 points out that there is selling pressure in the Solana market. The capital is flowing out of the asset, with the bears having the upper hand. Unless the value moves back above zero, the downside momentum may persist.

The daily Relative Strength Index (RSI) of Solana is settled at 25.55 indicates that it is in the oversold territory. As strong selling pressure is present, it can signal a potential bounce if the buyers step in. Moreover, Solana’s Bull Bear Power (BBP) value is stationed at -11.28 suggests strong bearish dominance. Significantly, the sellers are firmly in control, with heavy downside pressure and limited bullish strength in the near term.

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