Solana Price Poised for Steep Decline, Hovers Near Critical Support of $135

Solana's price is struggling to maintain the $135 support level, with a major bullish trend line providing support on the weekly chart. However, if the price closes below $135 and then $110, SOL could experience a significant decline.

Solana Price Poised for a Steep Decline, Navigating Critical Support at $135

New Delhi, India (CoinChapter.com) - Solana (SOL), the blockchain platform known for its high-throughput and low transaction fees, is currently facing a pivotal moment that could determine its future trajectory. SOL price has been struggling to stay above the crucial support level of $135, raising concerns among investors about a potential sharp decline.

In the previous week's analysis, SOL experienced a substantial 40% drop, eroding gains from the earlier high of $210. The weekly timeframe exhibited a series of bearish candles, signaling a shift in market sentiment. SOL price dipped below the pivotal level of $162, entering a short-term bearish zone.

The bearish momentum pushed SOL price towards the 50% Fibonacci retracement level of the upward move from $7.92 to $210. However, the bulls demonstrated resilience near the $110 support area, keeping the price comfortably above the 50-week simple moving average (SMA).

In a recent attempt to regain momentum, SOL embarked on a brief upswing aimed at surpassing the $135 and $140 resistance levels. However, the bears remained vigilant near the $162 resistance, leading to another downturn in price, mirroring the broader market decline led by Bitcoin.

Currently, SOL price is testing the critical support of $135. A weekly chart analysis reveals the formation of a significant bullish trend line with support at $135. Failure by the bulls to defend this trend line could trigger a further decline below $130.

The next major support level is located at $110, which could potentially cushion a fall. Beyond that, the 61.8% Fibonacci retracement level of the upward move from $7.92 to $210, approximately $85, could provide additional support.

A breach of the $85 support level could intensify selling pressure, potentially triggering a revisit of the $70 level and the 50-week SMA. The bears could then target the $55 level.

Despite the bearish outlook, the bulls could salvage the situation if SOL price remains above the trend line support. An immediate resistance level awaits at $145, followed by a significant hurdle at $162.

Surpassing the $162 resistance could reinvigorate the bullish sentiment, potentially paving the way for a rise to $185. Further gains could propel SOL price towards the $200 mark.

From a fundamental perspective, Solana's team provided a weekly community update, highlighting several key developments. Stripe, a prominent digital payments giant, has enabled USDC payments via Solana, while the Colosseum project directory publication announced the Renaissance Hackathon.

The confluence of technical and fundamental factors suggests that SOL price is at a crossroads. If the bulls can't maintain the $135 support, the price could tumble to $110 or even $85. Conversely, if SOL price rebounds from the current support level, it could revisit the $162 resistance zone.