The so-called “Uptober” began on a very unpleasant note for the cryptocurrency. Solana (SOL) price is struggling to gain traction after failing to clear the critical $161 resistance level over the past two months. Solana is down more than 14% since the beginning of the month and was trading at just $135.25 on October 3rd. Now, as the cryptocurrency faces continued downward pressure, traders are wondering if further declines are in store.
Bearish indicators signal continued downward pressure on Solana
Solana’s future outlook appears to be changing based on critical technical indicators that have recently shown a bearish trend. Macro momentum for Solana currently points to a gloomy outlook, as evidenced by major technical indicators.
The relative strength index (RSI) fell below the neutral line of 50.0, indicating a strengthening bearish trend. The RSI in bearish territory indicates increasing selling pressure, with little sign of a reversal in the near future.
After Solana failed to break through the $161 resistance level, bearish sentiment intensified. Additionally, Solana’s funding rate turned negative for the first time in more than two weeks. A negative funding rate means traders are paying to hold long positions, which is a clear signal that the market now expects SOL to continue to fall.
Solana falls below support as cryptocurrency market weakens
Currently trading at around $143.99SOL is below the $150 support threshold. As market sentiment turns bearish and there are no immediate signs of a reversal, SOL could fall to $124, a level that acted as strong support last month. If it manages to hold at $124, it could bounce back, but if it fails, the next stop could be around $120, which marks the lower end of its current consolidation range.
However, if SOL moves $150 to the support level, there is a chance of recovery. A break of the $155 resistance would invalidate the current bearish outlook, giving Solana a chance to regain its upward momentum.
Solana’s troubles come at a time when the broader cryptocurrency market is also under pressure. October, commonly referred to as “Aptober” for its favorable price action, has yet to live up to its name. Escalating tensions between Iran and Israel intensified the downward momentum in the digital asset space, erasing gains from the previous month.
The overall cryptocurrency market is currently valued at $2.12 trillion, down 1% in the last 24 hours. Bitcoin (BTC) and Ethereum (ETH) also saw significant declines, with BTC down 6.64% and ETH down 10.35% over the past week. At the time of writing, Bitcoin is trading at $62,240.43 and Ether at $2,411.85.
Solana is not the only altcoin that has seen its price decline recently; Prices of other popular cryptocurrencies such as Cardano (ADA), Binance Coin (BNB) and XRP have also fallen over the past week; ADA is down 15%, BNB is down 9.22%, and XRP is down 10.51%. Traders are currently keeping a close eye on SOL price levels as a possible market downturn looms.
