Despite Recent Analyst Predictions, Solana's (SOL) Price Has Approached Yearly Low Levels

This suggests prices may recover minimally in the upcoming days. However, despite the bearish outlook, analyst Ali pointed out that Solana could face a potential recovery

Solana (SOL) has approached yearly lows despite recent analyst predictions. However, despite the bearish outlook, analyst Ali pointed out that Solana could face a potential recovery from the current prices.

Solana’s support level of $125 is an area to watch closely as it will decide the cryptocurrency’s trading path.

Solana has seen its price stabilize above the $125 price mark which can be viewed as a key support zone for Solana.

This can be seen as a numerical or psychological threshold that shapes upcoming market feelings and movement.

The cryptocurrency market shows increasing bullish signals when traders maintain trading positions above this level since it improves market confidence.

Solana Price Struggling for Gain

The SOL price action in recent times shows strong bearish market trends through its pattern on the price charts.

Solana’s price peaked in December before it dropped drastically while forming multiple descending trend patterns which usually indicate bearish market conditions.

Throughout this selling period, investors maintained their sales activities as the candlestick pattern shows an extended red movement which denotes strong selling pressure.

The price has now broken below its long-term support levels as seen in the 1-day charts, sparking fears of further declines.

The Relative Strength Index (RSI) indicates asset over-selling as its value remains below the 40-point mark.

The current state of market momentum shows minimal potential for substantial upward price adjustments during the short term.

Its current position reflects the bearish market sentiment while strengthening the prevailing negative price trend.

There is a support area at $120 where we can see buyers actively participating at this level from historical evidence.

The critical area at $120 will decide whether the Solana price will recover and change direction or if the downward momentum will push prices toward $100.

The price must show a strong bounce from this support area before any bearish momentum would push for a decline, potentially reaching the $100 level.

SOL Facing Sell-offs?

According to CoinMarketCap data, the trading volume, as seen in the second image, has spiked recently, which can sometimes be a signal of increased interest and activity.

High volume accompanying a downward price movement can sometimes indicate a capitulation phase where sellers want to exit their positions.

If buyers step in at lower prices, this could lead to a temporary bottom. The volume spike could be pivotal as Solana’s price approaches the support zone, providing a litmus test for the asset’s short-term trajectory.

SOL’s current technical setup paints a bearish picture in the near term, with vigorous selling activity and key technical indicators supporting this view.

The subsequent few trading sessions will be crucial, particularly regarding how the price interacts with the critical support at the $120 level.

A rebound from this point could signal a temporary respite or reversal, whereas a break below could exacerbate the downward trend.