The price of Solana (SOL) cryptocurrency plunged over 20%, trading at $141.93, amidst announcements of its inclusion in a strategic reserve.
Sharp Decline and Current Support Levels
After reaching a daily high of $179.53, Solana fell to a low of $140.21, erasing gains from previous sessions. Key support around $155 failed to hold, triggering further decline. Trading volume surged, indicating strong market interest. Technical indicators show mixed signals: Bollinger Bands suggest heightened volatility, while moving averages show downward pressure. Recovery above $155 could renew bullish momentum.
Key Liquidity Zones for Solana
Analysis shows Solana is encountering crucial liquidity zones with strong resistance near $183 and $165. These levels are critical for determining SOL’s future movement, as large liquidity clusters affect market direction. SOL recently hit $183.32 but faced selling pressure. The price tested $165.69 but failed to hold, dropping to $155. If SOL maintains support above $155, it might reclaim $165. Failure to hold could lead to a drop towards $140.
Investor Sentiment Contradictions
Solana’s market shows a split in sentiment, confirmed by both public optimism and institutional caution. Public and retail traders remain bullish on SOL’s prospects, yet institutional investors are wary. Historically, when 'smart money' turns bearish while retail remains optimistic, a correction may occur. If retail momentum holds, SOL might rise. However, if institutional control strengthens, increased selling pressure is likely before any sustainable recovery.
With ongoing price changes and mixed market sentiment, Solana's future price movement remains uncertain. The coming days may determine if the current dip is temporary or signals more substantial shifts.
