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Solana Breaks Below Critical Support, Analyst Warns of Further Decline

Coin WorldMonday, Feb 17, 2025 8:36 am ET

1min read

Solana (SOL), a prominent cryptocurrency, has recently experienced a significant price decline, breaking below a crucial support level. This development has sparked concern among investors and analysts, who are closely monitoring the situation. In a recent post on X, crypto analyst Ali Martinez (@ali_charts) shared a technical analysis of Solana, warning that the cryptocurrency was breaking below a critical support level.

The post was accompanied by a TradingView chart that highlighted SOL/USDT's price movements, Fibonacci retracement levels, and an ascending price channel. Martinez's chart initially showed Solana trading at $188.85, marking a 2.83% decline for the day. The price action indicated a break below the 0.618 Fibonacci retracement level ($197.41), often considered a key support. If this level failed to hold, SOL was expected to decline toward the 0.5 Fibonacci level ($180.91) and potentially further to the 0.382 level ($165.78).

At the time of this writing, Solana is trading at $181.70, reflecting a 6.14% drop in the last 24 hours, according to data from CoinMarketCap. This further confirms the bearish outlook in Martinez's analysis, as SOL approaches the next key support levels. Additionally, the chart illustrated an ascending parallel channel, which Solana had followed for several months. The recent breakdown suggests a potential bearish trend, with price movement outside the channel indicating a shift in momentum. If SOL does not regain support within this structure, further downside pressure could follow.

The post quickly sparked reactions from the crypto community, with users expressing bearish and bullish sentiments regarding SOL's price trajectory. A user named MockingJay responded skeptically, attributing Solana's decline to the proliferation of low-quality projects on its blockchain. The comment stated: "Lmfao! What did y'all expect would happen? There's a new shitcoin on the Solana blockchain every day, pump and dump coins will be the death of Solana..." This reflects a common concern among traders who believe that the influx of speculative meme coins and short-lived projects on Solana could undermine its long-term value. Some critics argue that high transaction speeds and low fees have made the blockchain attractive to scam projects,

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