Solana (SOL) is now trading around a critical support level after experiencing a 15% decline from its local highs at $162.36. Despite Solana's relative strength compared to other altcoins, recent price action has added volatility and risks for investors.
Bearish sentiment dominates, with data from Coinglass reflecting market concerns as Solana approaches key support. Some top investors see a decline to $130 as a potential entry point.
The coming days are crucial for Solana. If it holds the support level, it could signal resilience; otherwise, further declines are expected. A negative funding rate indicates traders are increasingly bearish, with more short positions than long.
Top trader AlienOvich forecasts a drop to the $135-$128 range. If Solana fails to hold current levels, this bearish scenario could materialize, challenging Solana’s recent gains.
Solana’s price action shows it testing the daily 200 EMA after dipping to $139.87. For SOL to maintain its uptrend, it must reclaim the EMA and consolidate around the $140 mark, failing which deeper corrections could follow.
