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Solana(SOL) May Struggle to Stay Above $200 as Bears Tighten Grip

2 mins
Updated by Daria Krasnova
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In Brief

  • Down 8% in a week, Solana struggles within a bearish descending channel, nearing $200 support.
  • SOL has broken below its 20-day EMA, indicating sellers’ control and creating resistance to recovery.
  • Failure to hold $200 support may lead to $187 while breaking resistance could aim for $264 highs.
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Solana (SOL) has been grappling with a persistent price decline over the past few weeks amid the pullback in the broader cryptocurrency market. It currently trades at $218.76, noting an 8% price drop over the past seven days.

Amid ongoing selloffs and low buying interest, SOL faces mounting pressure that could push its price below the critical $200 threshold in the near term. This analysis explains why this may be possible.

Solana Sees Spike in Bearish Pressure

On a daily chart, Solana’s price has been moving within a descending channel since November 23. This channel is formed when an asset’s price moves between two parallel downward-sloping trendlines, indicating a bearish trend. It suggests that the price is experiencing lower highs and lower lows, reflecting sustained selling pressure. 

The upper line of this channel represents resistance, while the lower trend line is a support level. In SOL’s case, it has faced resistance at $230.17 and has found support at the $200.60 price level. 

Solana Descending Channel.
Solana Descending Channel. Source: TradingView

Moreover, the decline in SOL’s value over the past few weeks has caused it to break below its 20-day Exponential Moving Average (EMA). This moving average measures an asset’s average price over the past 20 days, with more weight given to recent prices.

When an asset’s price breaks below the 20-day EMA, it signals a shift to bearish momentum, indicating that sellers are gaining control. Following the break, the 20-day EMA often acts as a resistance level, as attempts to rise above it may face selling pressure from traders viewing it as a barrier.

In SOL’s case, this barrier is formed at $227, which its price has struggled to breach in the past six days. 

Solana 20-Day EMA
Solana 20-Day EMA. Source: TradingView

SOL Price Prediction: Why the $200 Level Must Hold

Strengthening selling pressure will likely push the SOL coin price towards the $200.60 support level. If the bulls cannot defend this zone, the price could drop to $187, a level not seen since early November. 

Solana Price Analysis
Solana Price Analysis. Source: TradingView

However, should demand rise, the SOL coin price could break through its 20-day EMA resistance at $227, surpass the upper trendline of its descending channel, and set its sights on reclaiming its all-time high of $264.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Abiodun Oladokun
Abiodun Oladokun is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins. Previously, he conducted market analysis and technical assessments of various altcoins at AMBCrypto, utilizing on-chain analytics platforms like Messari, Santiment...
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