Solana (SOL) price has dropped nearly 9% today and is nearing the $130 level, marking the first time since September 2024 that it may fall below this point.
Current Market Situation for Solana
Two key indicators on SOL's daily chart are close to completing a bearish crossover, which could lead to further price decline below $100. The 50-day and 200-day exponential moving averages are on the verge of a 'death cross,' traditionally an ominous sign for cryptocurrencies.
Analysis of the $130 Support Level
Based on Fibonacci retracement analysis, SOL is currently between the 0.5 and 0.618 levels, known as the 'golden zone.' The $130 level acted as a strong support during 2024. A daily close below $130 could reopen the $120-$110 liquidity pocket.
Reversal Potential and Market Impact
The recent price movements have severely impacted Solana's market sentiment, as noted by commentator Miles Deutscher. The platform Santiment also signals bearish sentiment among investors toward SOL and other assets. However, such conditions may open up the potential for correction and reversal, especially if upcoming events are already priced in.
Solana's market remains tense, but historical data suggest a possible reversal near the current levels. Investors should closely monitor developments.
