The SuperTrend indicator on Solana's weekly chart is once again showing a bearish signal. This causes concern among investors as the last time this indicator turned negative, SOL's price dropped by 95%.
SuperTrend Signals and Their Impact on Solana
The SuperTrend indicator, used by many traders to track trends, shows a bearish trend on Solana's weekly chart. The last time this happened in mid-2022, SOL's price fell sharply. This new bearish warning increases selling pressure and raises speculation about a possible extended downturn.
SOL's Key Support and Resistance Levels
Solana is currently testing support between $120-$130. A break below this range could lead to further price declines, with the next support around $95-$100. For recovery, SOL's price would need to climb back above $150-$160 to indicate the downtrend might be over.
Market Sentiment and Historic Patterns of Solana
The chart volume isn't visible, but the sharp drop suggests heavy selling activity. If selling pressure continues, it could reinforce the bearish SuperTrend signal. The 2022 historical precedent adds weight to concerns as similar conditions previously led to a steep decline. However, the market's response to this indicator will determine the outcome: if buyers step in at current levels, Solana's price could enter a consolidation phase.
The situation with Solana's price remains uncertain: traders are watching support and resistance levels closely to determine whether the price will continue to drop or stabilize.
