The price of Solana (SOL) has declined significantly over the past week, breaking below several key support levels that had previously held up the price.
According to data from cryptocurrency market analytics platform CoinGecko, SOL has fallen around 10% in the last 7 days, from highs above $100 last week to current levels around $85. The price drop means SOL has decisively broken below its 20-day moving average, a widely-watched indicator of short-term momentum.
The move lower also saw SOL pierce through a rising trendline that had supported its price for the last 100 days. This ascending support line has formed the base from which SOL has bounced higher since October. Its break hints that the bullish momentum that has supported Solana for months may be fading.
Analysts worried about Solana losing $77 level
Technical analysts are also concerned about SOL losing grip of the $77 level, which represented the 0.382 Fibonacci retracement of its most recent major price swing. This zone had provided a floor for the price on several occasions in January, but its failure to hold could open the door for deeper losses.
Some traders are now targeting a decline toward the $70 area, which represents both a horizontal support level from September last year as well as the 0.618 Fibonacci retracement of the same price move.
Sentiment among analysts seems to be shifting along with Solana’s faltering price action. Lmn12121, a pseudonymous Twitter-based analyst, recently forecast that SOL could drop as low as $70.
real ones remember.
maybe we get one final exit pop or maybe it blows straight through support from here, im not sure, all i know is if we get low 70s ill be max bidding sol pic.twitter.com/R26m1mGmdi
— Bluntz (@Bluntz_Capital) January 22, 2024
Another analyst highlighted SOL’s loss of its 100-day rising trendline as “a bit bearish,” warning it could trigger more significant selling towards the $77 and $70 support zones.
While the immediate outlook based on price action and momentum readings has turned negative, some expect the current weakness to be temporary.
