Solana Plunges to 14-Month Low Amidst Bearish Storm

Solana, a prominent cryptocurrency, is currently facing strong bearish sentiment, with analysts predicting a potential dip to $65, a 14-month low. The SOL token has declined nearly 38.74% over the past month, sparking discussions about its future in the cryptocurrency market.

Popular crypto analyst Ali Martinez has emphasized that a breach of the $130 support level could lead to a sharp decline in SOL’s price. Solana’s recent price decline has raised concerns among investors, with predictions of a potential drop to $65, as market conditions remain bearish.

Market sentiment analyzes suggest that Solana is forming a right-angled ascending broadening pattern, which typically precedes pronounced price movements. If Solana were to break below this pattern, it could catalyze a significant price decline. Martinez noted that should Solana’s price dip below the critical support level of $130, it could result in SOL plummeting to $65—a low not seen since December 2024.

Evaluating the technical indicators, COINOTAG’s analysis confirms that Solana is presently entrenched in a bearish environment. The prevailing market conditions appear to set the stage for additional losses, with significant implications for SOL’s price trajectory. The Relative Strength Index (RSI) for Solana has plummeted to an oversold zone at 26, indicating overwhelming selling pressure. Additionally, the Chaikin Money Flow (CMF) has been negative for the past three weeks, confirming the bearish trend.

Solana’s Total Value Locked (TVL) has sharply fallen to a three-month low of $7.3 billion, suggesting a diminishing user engagement on the Solana network. This alarming decrease in TVL underscores strong bearish market sentiments. The shift in user behavior, favoring transfers to stablecoins, indicates an anticipation of further price declines, contributing more strain on market activity. This decline in market participation is further evidenced by a significant drop in aggregated open interest, indicating a lack of investor confidence in the current market.

In summary, Solana is currently under strong downward pressure, and the prevailing bearish sentiments suggest an impending dip for the cryptocurrency. If market conditions persist, SOL could find support around the $128 threshold. Conversely, a market trend reversal may allow SOL to reclaim the $155 level.