Is the $124 Support Crucial as Solana (SOL) Bulls Strive to Retain Control?

Solana (SOL) is currently experiencing fluctuating trading activity with significant support identified at the $124 level. A potential dip below this mark may lead to a deeper price pullback, while maintaining or exceeding this level could see the bulls attempt to push forward.

Key Takeaways

Solana opened the day at $128.29 and saw highs of $139.21.
Current trading price is approximately $138.73, with a market cap of $77.85 billion.
Daily trading volume has surged by over 141.77%, reaching around $4.86 billion.
Critical support is at $124; falling below it may lead to a correction towards $115 and $106.
Technical indicators show a bearish sentiment, although some factors suggest a potential for recovery.

Is the $124 Support Critical as Solana (SOL) Bulls Fight to Maintain Control?

Market Overview

Solana started the day with a trading low of $128.29, but following a brief bullish rally, the cryptocurrency has tested resistance levels ranging from $130 to $137, eventually peaking at $139.21. As reported by CoinMarketCap, Solana is currently trading at the $138.73 level.

The altcoin's market capitalization stands at $77.85 billion, with SOL's daily trading volume experiencing an impressive increase of over 141.77%, reaching about $4.86 billion. Coinglass reports indicate a liquidation amounting to $31.17 million for Solana within the past 24 hours.

Can Solana Prevent a Larger Decline?

Recent technical analysis highlights that Solana is presently moving sideways, establishing a crucial support level at $124. A drop below this threshold could prompt a deeper correction, with the next significant support appearing at around $115 and $106.

The technical indicators showcase that the Moving Average Convergence Divergence (MACD) and signal lines are positioned beneath the zero line, signaling a bearish outlook. Crossover below this line presents a weaker bullish scenario compared to crossovers above it.

SOL chart (Source:TradingView)

The Chaikin Money Flow (CMF) indicator, currently at 0.16, indicates moderate buying pressure in the SOL market. Although capital is flowing into the asset, the influx is steady rather than aggressive, suggesting accumulation rather than a frantic buying spree.

Solana's daily Relative Strength Index (RSI) stands at 52.46, indicating a neutral market leaning slightly towards bullish. There are no strong signals suggesting that the asset is overbought or oversold, which keeps the price movements balanced. Furthermore, the Bull Bear Power (BBP) at 3.30 implies that bullish strength is marginally greater than bearish pressure, providing a mild positive signal that supports upward momentum.

If a bearish correction occurs in the SOL market, prices may sharply decline to test the key support level at $134.58. Should the bearish forces gain momentum, a death cross could occur, potentially driving Solana's price down below the $130 mark.

On the other hand, if the bulls manage to regain lost momentum, prices may rise toward the nearby resistance level of $142.37. Continued upward movement could trigger the formation of a golden cross, leading to a price surge above $146.85.

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