- Solana gets blocked
- Risks of losing $200
With its price dropping sharply from recent highs and currently trading just above $210, Solana has entered a decisive correction phase. Selling pressure increased as a result of the token’s sharp decline signals, with $200 emerging as the next crucial test. The market is bracing for further losses because of the speed of this decline, which increases the likelihood that $200 will not hold for long.
Solana gets blocked
Technically, the final immediate support is the 50-day EMA at $206 on the market. The decline may pick up speed toward the 100-day EMA around $193 if Solana does not stabilize here. This level is a more robust support level if bears maintain control because it corresponds with a wider retracement zone. If SOL makes a clear break below $193, it could be subject to a lengthy correction, with a potential decline to the $180 region.
SOL/USDT Chart by TradingView
Market sentiment is mixed, as seen by the volume profile. Despite dominating previous sessions, selling activity has not yet reached levels of capitulation. Volumes instead imply a steady distribution, which implies that bears retain control without resorting to excessive force. This sets up a situation in which additional selling might gradually weaken support levels, instead of causing a single spectacular collapse.
Risks of losing $200
Weakening conditions are also confirmed by momentum indicators. After dropping from early September’s overbought levels, the Relative Strength Index (RSI) is now closer to neutral, indicating waning bullish strength and potential for further decline.
Simply put, Solana’s price action indicates that there is a significant risk to the $200 mark. Bearish conditions that aim for the 100 EMA at $193 are very likely if the token closes below its 50 EMA. To turn the tide back in their favor, bulls must reclaim $221, the most recent breakdown point. The prevailing outlook was bearish until that time. In the absence of a robust recovery from the current levels, Solana’s rally seems to have stalled, and the path of least resistance is still lower.