CandleFocus

Solana (SOL) Drops Below $150 as Selling Pressure Increases

Author: Content Editor
Solana (SOL) has experienced a significant decline of over 16% in the past 24 hours, causing its market cap to fall below $70 billion. The drop follows a recent rally after SOL was added to the US strategic crypto reserve, but this momentum was short-lived and led to a deep correction. Technical indicators such as the Ichimoku Cloud and Directional Movement Index (DMI) suggest that SOL is in a bearish phase with downside risks still present. If the price stabilizes and reclaims key resistance levels, a rebound towards $200 is possible in the coming weeks. However, SOL is currently trading below the cloud, indicating a bearish trend, and the bearish rejection at the Tenkan-sen suggests that sellers are still in control. The ADX reading on the DMI chart also indicates weakening trend strength, suggesting the downtrend lacks significant force. If the downtrend persists, SOL could decline further and potentially test the $125 support level. However, if buying pressure increases and the trend reverses, SOL could challenge resistance at $160 and potentially reach levels above $200.

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