Solana Drops 12% in 24 Hours, Hovers Near $140 Support

Solana is currently facing significant market pressure as its price hovers near the $140 mark. This level is crucial as it represents a key technical support zone. If the price breaks below $140, it could potentially drop towards $100, according to analysts' forecasts. The current price action indicates that sellers are eyeing lower levels, with key support zones identified at $120 and $100.

Technical indicators provide a mixed outlook. The Moving Average Convergence Divergence (MACD) has turned negative, with a value of -2.74, indicating short-term weakness. The Relative Strength Index (RSI) stands at 40.03, suggesting neutral momentum. However, the price is not in oversold territory, which means it could either recover or continue its downward trend. Additionally, the Bollinger Band width has narrowed to 19.77%, signaling an upcoming period of volatility. The Directional Movement Index (DMI) reads 27.9/37.6, while the Average Directional Index (ADX) sits at 14.8, pointing to weak trend strength and a sideways trading range.

Market observers note that Solana’s recent move below $144 places it in a vulnerable position. The support at $140 has so far provided some cushion, yet price movement remains fragile. At press time, Solana is trading at $147.17, just below key resistance near $150. If Solana loses $140 as support, it could open the door for a deeper pullback toward $100. The price is being squeezed between $141 and $147, reflecting ongoing market indecision as traders wait for a clear breakout or breakdown.

Another market tracker mentioned that Solana has formed a W-shaped reversal and is still holding support at $140. As long as this range holds, an upward breakout toward $155+ looks likely in the coming sessions. However, a fallout below the $140 price might push the Solana down to the $123 or even $100 as past support levels are located there. The increase in risk-off dynamics within equities is suggested to affect crypto assets since traders are recommended to shift their focus to a wider market sentiment.

Solana's price has been under significant pressure, currently hovering near the $140 mark. The cryptocurrency has experienced a notable decline, with a 12% drop in the past 24 hours and a 19% decrease over the week. This downward trend has been fueled by various factors, including declining demand for meme coins and controversies surrounding the Libra token. The price has decisively broken below the critical $149–$150 support zone, and is now trading around $144. This level is crucial as it represents a strong support zone. The technical snapshot shows that Solana's price is holding above the 50-day Exponential Moving Average (EMA) of $140, with a cup-and-handle pattern suggesting a potential move towards $184 if the price breaks above $156. However, the overall sentiment remains bearish, with the cryptocurrency facing significant resistance at higher levels.

The recent decline has been attributed to a combination of factors, including market sentiment and technical indicators. The price has been struggling to find support, and the current levels are critical for determining the next direction of the trend. If the price manages to hold above $140, it could potentially stabilize and find support at higher levels. However, a break below this level could lead to further declines, with the next support zone identified at $120. The overall market sentiment remains cautious, with investors closely monitoring the price action for any signs of a reversal.