Solana has encountered intense selling pressure, losing over 57% of its value since January 13. Bulls are struggling to regain momentum, and market sentiment is not conducive for a strong recovery, leading to cautious investor behavior as they await a potential trend shift.
Despite the bearish outlook, some analysts suggest the correction could be nearing its end. A top crypto analyst, Ali Martinez, notes that Solana is in consolidation within a wide range pattern, which usually indicates increased volatility before a potential breakout.
Solana is struggling around the $140 support level, with a continued bearish sentiment and unpredictable market events, including trade war developments and a Strategic Bitcoin Reserve executive order. These factors have added pressure to financial markets and Solana.
Technical indicators hint at a significant move, with Solana remaining in a right-angled ascending broadening pattern, often leading to volatility and potential breakout in either direction. Breaking below $140 could deepen the bearish trend, but rising above key resistance levels would indicate recovery.
Currently trading at $139, Solana fails to reclaim its 200-day MA and EMA, risking further downside if below $125. However, overcoming $180 could shift sentiment toward recovery.
Traders are watching Solana's movements closely, as the next few days will determine whether Solana can stabilize or face further downside.
