Solana Plunges 55% in Six Weeks: Bear Market Looms

Solana (SOL) has been experiencing a significant downturn in recent weeks, with its price dropping to levels not seen since September 2024. The cryptocurrency market as a whole is grappling with intense selling pressure and investor fears, leading to a 55% loss in Solana's value in less than six weeks. This decline has erased the gains from its post-election rally and raised concerns about a potential prolonged downtrend.

Market sentiment has shifted towards panic, with traders growing increasingly fearful that Solana's correction may continue into lower price levels. Despite multiple attempts by bulls to reclaim momentum, key demand zones have been unable to be defended, allowing bears to maintain control. Top analyst Ali Martinez has shared a technical analysis indicating that Solana appears to be experiencing a macro trend shift from bullish to bearish. If SOL fails to recover key levels soon, it could signal a deeper downtrend and further selling pressure in the coming weeks.

Solana is currently trading below crucial daily support levels, invalidating the bullish structure thesis that many traders were holding onto. The price action has been weak, with Solana now caught in a high time frame range between $120 and $220. If bulls fail to defend the lower end of this range, Solana could face the risk of a prolonged bear market. The current price breakdown suggests that bears remain in control as selling pressure continues to mount. Solana has struggled to reclaim momentum, and the once-strong uptrend that started in July 2023 is at risk of collapsing. Analysts are now monitoring whether SOL can hold above the $120 support level, as a failure to do so could trigger a deeper correction.

Martinez's technical analysis states that Solana appears to be experiencing a macro trend shift. Martinez explains that the bullish trend that started in mid-2023 is on the verge of breaking, and if SOL continues to lose key demand levels, it could confirm a long-term bearish phase. Investors are now waiting for a confirmation move. If Solana can reclaim key resistance levels, bullish momentum could be reestablished. However, if the price fails to hold support and breaks below $120, it may indicate the start of a bear market for Solana.

Solana is trading at $130 after experiencing a 33% drop in less than