Solana Plunges to 5-Month Low Amidst Bearish Trend

Solana, a leading cryptocurrency, has been experiencing a significant decline in its price over the past month. At the time of writing, Solana was trading at $141, marking a 38.74% decline from its price a month ago. This drop has extended a month-long bearish trend, with SOL hitting a 5-month low of $131. The sustained decline has also led to a decrease in Solana's market capitalization, which has fallen to a 5-month low of $69 billion.

Analysts have been discussing the future trajectory of Solana amidst this drop. Popular crypto analyst Ali Martinez has suggested a potential dip to $65. In his analysis, Martinez noted that Solana appears to be forming a right-angled ascending broadening pattern, which signals growing market volatility and the potential for strong price movements. A breach below this pattern could result in a sharp price decline, with SOL hitting a low of $65, which would send it to a 14-month low.

According to AMBCrypto's analysis, Solana is currently in a strong bearish phase. The prevailing market conditions position SOL for further losses on its price charts. The Relative Strength Index (RSI) has dropped to reach oversold territory at 26, suggesting strong selling pressure. This dominance is further validated by the Chaikin Money Flow (CMF), which has remained negative over the past three weeks. Additionally, Solana's Total Value Locked (TVL) has been in a free fall, dropping to a three-month low of $7.3 billion, implying that few users are currently engaged with the Solana network.

As a result of these factors, Solana is currently experiencing strong downward pressure, and with bearish sentiments holding in the market, SOL could dip further. If the prevailing market conditions hold, SOL will find the next support around $128. However, if a trend reverses from here, the altcoin will first reclaim $155.