Solana plummets 2.05% to $139.21 as bears dominate oversold market

Solana (SOL) has been experiencing a prolonged downtrend, with increased selling pressure following its strong rally towards $250. The recent price action indicates that SOL is struggling to regain momentum, currently trading at $139.21, down 2.05% for the day. Technical indicators suggest a possible oversold condition, raising the question of whether Solana is preparing for a bullish rebound or if further downside is inevitable.

Traders and investors are closely monitoring support and resistance levels to determine the next significant move. The key question is whether Solana will bounce back or if bears will continue to dominate. Analyzing the daily price chart can provide insights into the next potential direction for SOL.

The Relative Strength Index (RSI) currently sits at 33.03, approaching the oversold region (below 30). This suggests that selling momentum has been intense, and a potential bounce could be on the horizon. However, the RSI is still below the 50-neutral level, indicating that bullish strength remains weak for now. A push above 40 on the RSI could signal early recovery, but if it drops below 30, Solana may see further downward pressure towards $130 or even $120. The market needs a shift in momentum before any real bullish action can take place.

The Moving Average Convergence Divergence (MACD) is currently in the negative zone, with the MACD line still below the signal line. This suggests that bearish momentum is still dominant, and SOL price needs a clear bullish crossover for any sign of a trend reversal. However, the MACD histogram is showing signs of flattening, indicating that the selling pressure could be weakening. If buyers step in and push the price above $145-$150, a bullish MACD crossover could follow, confirming a possible short-term trend reversal.

Solana is currently hovering above a crucial support zone at $138-$130. If this support holds, SOL price might see a bounce toward $150, where resistance is likely to be strong. A break and close below $130 could lead to a sharper drop, potentially testing $120 or even $110 if bearish momentum accelerates. On the upside, $150-$160 remains the first major resistance zone.