Solana's Price Plummets to 2024 Lows, Bearish Setup Looms

Solana's price has been struggling to recover, remaining trapped in a steep bearish channel. The cryptocurrency recently fell below $160, marking its lowest level since November 2024. Market sentiment remains negative, limiting any upward movement. SOL is currently testing key support near $130, raising concerns about a potential breakdown. If selling pressure continues, Solana may face further declines in the coming sessions.

Crypto analyst Ali has identified a possible bearish setup in the Solana price chart. According to his analysis, SOL appears to form a right-angled ascending broadening pattern, a technical structure that could signal heightened volatility. An ascending resistance line and a horizontal support level characterize this pattern, suggesting that price swings are becoming more unpredictable, with a widening gap between highs and lows. Such formations often indicate uncertainty, leading to potential breakouts in either direction.

Ali highlights $130 as a critical support level for SOL. If the price falls below this mark, it could trigger a sharp decline, possibly reaching $65. This would represent a significant drop from current levels, potentially impacting market sentiment.

Solana price remains under pressure as on-chain data reveals a sharp drop in network activity. The total transfer volume of SOL has plunged from $1.99 billion in November 2024 to just $14.57 million. This marks a significant decline in transactions, reflecting reduced usage and liquidity within the ecosystem. On-chain metrics from Glassnode highlight a persistent downward trend in Solana’s transfer activity. The sharp fall in volume coincides with fluctuations in SOL’s market price, which currently trades at $103.07. The declining transaction value raises concerns over Solana’s network demand and overall market sentiment.

The SOL price continues to decline as selling pressure intensifies. The 4-hour chart shows a downward trajectory, with SOL trading at $138, marking a 1% drop. The recent price action suggests increased bearish momentum, with resistance at $160 and support at $130. The Relative Strength Index (RSI) stands at 30, hovering near the oversold zone. The Moving Average Convergence Divergence (MACD) indicator displays a bearish crossover. The MACD line remains below the signal line, signaling negative momentum. A descending channel pattern formed during the recent downturn, reflecting controlled selling activity. The price