Solana (SOL) is currently trading around $127, a critical level that could lead to either a recovery or further declines. Throughout the year, this price point has frequently served as an important support for the altcoin.
According to the daily chart, the $127 region has acted as a major support level for Solana multiple times this year. Past examples in March and May saw the price bounce to higher levels after defending this support.
Currently, the situation appears different, as Solana's price is significantly below the 200-day EMA, suggesting a bearish outlook.
If the price drops below $127, it could fall further to $110. The On Balance Volume (OBV) indicator also highlights a negative market structure, suggesting distribution and a potential downtrend.
The Awesome Oscillator (AO) is negative, indicating bearish momentum. If selling pressure intensifies, Solana's price could slide below $110.
If bulls successfully defend the $127 region, Solana's price might jump to $136.61, nullifying the bearish prediction.
