The price of Solana (SOL) has reached a crucial level amidst market volatility. Present market conditions and analytical data suggest that SOL's price is testing significant support at $117.
Current Market Situation for Solana
The price of Solana recently reached a new all-time high but failed to sustain at that level. A bearish divergence on the weekly chart raises questions about the strength of the recent uptrend. Investors are closely watching the $117 support zone, which has remained firm for over a year.
Technical Indicators and Their Significance
The Relative Strength Index (RSI) currently stands at 40, a level previously associated with local bottoms. Whether this pattern repeats will depend on the price's response to the $117 support. Moreover, the Parabolic SAR indicator suggests a potential upward trend reversal.
Two Possible Scenarios for SOL Price
Scenario 1: A strong rebound from the $117 level, supported by increasing RSI and volume, could lead to a renewed upward push. Scenario 2: If the bounce lacks strength, the price may gradually decline, breaching the support level.
The outcome of testing the $117 level will be crucial for SOL. Market participants should observe price reactions closely.
