Solana (SOL) Faces Selling Pressure: Will It Drop Below $100?

Paula Winkler • 19.04.2024 15:21

The Essentials in Brief

Solana (SOL) recently surpassed the $150 mark, but soon faced increased selling pressure that pushed the price down to $100. The question many investors are now asking is whether Solana will fall below the $100 mark or if a crucial resistance can save the day. Here’s a detailed look at the current situation.

The recent price drop of Solana

After Solana briefly rose above $150 on April 14, an increase in selling pressure caused the price to fall to around $100. This decline could have been partially influenced by the release of version 1.17.31, which initially created a positive mood. However, the resistance area between $155 and $162, which previously represented a demand zone, quickly became a battleground for the bulls.

Technical Analysis and Critical Support Levels

The technical analysis shows that the $122 level represents a crucial support that the bulls must defend to prevent a further price decline. If Solana were to fall below this level, this could lead to a bearish trend on the 12-hour level, with the key low at $98.48. A fall below this level would significantly bearish the market structure.

The Possibility of a Price Below $100

The liquidation heatmap of the last three months suggests that the next important interest level is at $92.57. This level has been identified as a critical point for liquidations since February. Although it is possible that SOL could drop to $92, it is not mandatory that every liquidity pool is tested. A daily close below $122 would significantly increase the likelihood of a drop to $92.57.

Our Assessment

The current situation of Solana shows how volatile the crypto market can be and how quickly the market sentiment can change. For investors, it is important to keep an eye on the technical support levels and adjust their investment strategies accordingly. Although the possibility of a drop below $100 exists, investors should also consider the potential for a recovery if the key supports hold. As always, it is crucial to conduct your own research and not rely exclusively on market forecasts.

Sources: AMBCrypto, Hyblock