Solana has been experiencing a notable downtrend since April, with its price retreating from highs around $200. The asset is currently going through a challenging phase, moving lower with signs pointing to a possible relaxation of this bearish momentum.
Solana has been experiencing a notable downtrend since April, with its price retreating from highs around $200. The asset is currently going through a challenging phase, moving lower with signs pointing to a possible relaxation of this bearish momentum.
Declining trading volume is a critical indicator that suggests sales activity is losing steam. This drop in volume usually precedes a possible reversal, as it indicates a lack of conviction in the continuation of the current trend. Solana’s price development in recent weeks further supports this as the asset struggles to maintain downward momentum, suggesting a possible shift in market sentiment.
Solana is testing significant support around the $130 mark, which could play an important role in the coming weeks. This level has emerged as a new low for the asset, and holding above it could be the first sign of a possible reversal, which could mark the formation of a higher low, a bullish signal for investors looking for a change of course.
However, challenges remain. The 26-day EMA acts as a strong resistance, along with a trend resistance line visible on the chart. These technical barriers will need to be overcome to achieve a convincing bullish reversal. The next immediate support after $130 is around $140, coinciding with the 100-day EMA, providing another crucial level that could boost Solana price if the current support holds.
Looking ahead, Solana’s future depends on its ability to stay above these support levels and overcome key resistances. A successful breakout of the 26-day EMA and trendline could catalyze renewed interest in Solana, which could lead to a recovery phase.
