Recent weeks have seen Solana (SOL) experiencing notable declines in value. The news surrounding Solana has been dominated by negative developments that have influenced its price. Reports have indicated that a decrease in demand and network activity could lead to a further reduction in SOL’s value.<\/p>\n
The significant 38% decline in decentralized exchange (DEX) activity and a drop in total value locked (TVL) have not been favorable for SOL. Analysis of price trends suggests that a pivotal range for potential recovery lies between $140 and $150.<\/p>\n
After facing resistance at the $180 level on February 20, SOL witnessed a sharp 21.45% price slump. Bitcoin (BTC) had previously been holding above $95,500 but when it unexpectedly fell below $90,000, it triggered a bearish sentiment that led to SOL’s decline.<\/p>\n
The On Balance Volume (OBV) has been on a downward trajectory since late January, exhibiting a series of lower lows since November. Despite this, the rally in January suggested that the prevailing downtrend might not dominate the market.<\/p>\n
The Relative Strength Index (RSI) on the daily chart indicated oversold conditions. While this didn’t guarantee an immediate reversal, it hinted that the $135 level could act as temporary support.<\/p>\n
Losing the $151 level, a crucial 78.6% Fibonacci retracement, paved the way for targeting the September low of $120.<\/p>\n
Analysis of the 3-month liquidation heatmap showed that the liquidation levels between $165 and $135 had been breached, with immediate targets possibly around $125.<\/p>\n
Reclaiming the $150 level could prompt SOL to consolidate within the $140-$160 range. The token tends to be drawn to large liquidity zones, but the absence of significant levels in the vicinity suggests a struggle to surpass $160 in the near future.<\/p>\n
Short-term goals might include testing levels at $143 and $161, but breaching the $140 mark could prove challenging based on current liquidation patterns. An upward movement beyond $150, coupled with a rise in Open Interest, might alter this scenario.<\/p>\n
Further scrutiny indicates a likely test of the $143 level soon, with potential targets in the $160-$176 range, albeit with a delayed realization. A drop to $125-$130 post the $143 zone test may follow before any recovery commences, while the $120 threshold’s ability to deter further bearish trends remains uncertain. Traders are advised to tread cautiously and manage risks given the heightened market volatility.<\/p>\n
Disclaimer: The views expressed are personal opinions and do not amount to financial or investment advice.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"
Recent weeks have seen Solana (SOL) experiencing notable declines in value. The news surrounding Solana has been dominated by negative developments that have influenced its price. Reports have indicated that a decrease in demand and network activity could lead to a further reduction in SOL’s value. The significant 38% decline in decentralized exchange (DEX) activity<\/p>\n","protected":false},"author":1,"featured_media":41644,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-41643","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/41643","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/comments?post=41643"}],"version-history":[{"count":2,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/41643\/revisions"}],"predecessor-version":[{"id":41646,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/41643\/revisions\/41646"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/media\/41644"}],"wp:attachment":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/media?parent=41643"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/categories?post=41643"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/tags?post=41643"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}