One of the most trending altcoins of 2023, Solana (SOL) has turned its direction downwards, failing to maintain its upward momentum. The technical outlook indicates that the fundamental support level for SOL is at $78, while the fundamental resistance level is at $104.
Continued Decline in Solana Following a Breakdown
SOL‘s price lost its momentum and fell below $100, with sellers taking control of the price. Over the weekend, the price fell below the rising trend line, signaling the end of the rally that began in October 2023.
While buyers are on the defense, the first significant support level that could halt this correction is at $78. This level previously served as a major resistance during the last uptrend and may now act as support.
On the other hand, Solana’s MACD histogram and moving averages are declining rapidly, signaling a bearish trend indicating that sellers currently have control of the price. Based on the technical outlook, SOL’s price is expected to continue falling for some time.
Currently, all eyes are on the key support level corresponding to $78 on the chart. If buyers cannot push the price up from here, a continued decline and a longer duration than expected can be anticipated.
Current Situation of SOL
SOL is trading at $90.33, down 3.76% in the last 24 hours at the time this article was written. Data shows that the altcoin‘s price has fallen by 11.95% in the last 7 days but has risen by 26.73% in the last 30 days.
SOL, which became the trendiest altcoin of the year especially in the last quarter of 2023, had risen to $121.08 on December 26, 2023, reaching the highest level seen since August 2022. The price chart reveals that the altcoin has been in a downtrend since then. The technical outlook suggests that if the $104 resistance is not breached, a drop to the $78 level is on the table, which would represent a decline of approximately 14% from current prices.
