Solana seems to be holding steady with a price of $132.19 per coin, marking a modest 1.3% increase over the last 24 hours. However, we are far from the all-time highs of over $200 seen in November 2021. The SOL crypto is showing signs of weakness, but what is really going on behind the scenes? Are technical indicators painting an even bleaker future for Solana?
Solana's SOL Price Wavers Under Pressure
Solana's price, which recorded 9 days of decline in early September, is currently below a significant pressure after being rejected by an ascending trendline broken, near $139.80. Since then, SOL has recorded a drop of 5.3% in just two daysnow trading at around $132.
If the resistance around the 50-day moving average, located at $141.43, continues to play the party pooper, Solana could see its price fall by a further 9% to reach key support around $120.91.
Technical indicators add water to the pessimists' mill. The RSI (Relative Strength Index) and the Awesome Oscillator are both below their neutral levels, suggesting increasing selling pressure.
Coinglass also reinforces this downtrend with a long/short ratio of 0.88showing that more traders are betting on SOL falling.
- Potential support at $120.91;
- Rejection near $139.80;
- Long/short ratio at 0.88.
Crypto: Development activity down, concerns up
Activity on the Solana network is not reassuring either. According to Santiment data, SOL's development activity index is in free fall, falling from 176.95 to 166 in the space of two days. This constant decline since the beginning of September suggests some loss of confidence in the Solana blockchain ecosystem.
Less development means fewer concrete projects, and this weighs directly on investor confidence, already shaken by a less than encouraging technical outlook.
However, there remains a glimmer of hope: If Solana manages to close above $141.43, the bearish scenario could be invalidated..
Such a performance could push SOL’s price to a new high, potentially reaching $149.30. But for now, caution remains the order of the day for fans of this crypto star.
Last week, Solana tested its support for the sixth time, signaling a consolidation phase, as reported in this Tremplin.io technical analysis.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
