Compass Investments

Crypto vs. Dollar

📌 Solana: why $142 is an important support level for SOL price

Solana has approached the critical $142 mark: will SOL reach the $160 mark in May? Sol

– Solana has approached the critical $142 mark: will SOL reach the $160 mark in May?

In the last 24 hours alone, the price of Solana has fallen more than 5% .

Several indicators and metrics were pointing to a trend reversal.

Market conditions have driven down the price of most cryptocurrencies, and Solana [SOL] is no exception. The price drop has brought the value of SOL to a critical level that could determine the future course of the token.

In the last 24 hours, the bears have clearly gained the upper hand: according to CoinMarketCap, SOL has lost more than 5% of its value in the last 24 hours.

At the time of writing, SOL was trading at $144.80 and had a market capitalization of over $64 billion, making it the fifth largest cryptocurrency. The price drop led to a decline in the sentiment-weighted index of the token.

Thus, bearish sentiment around SOL dominated the market. The social volume also declined, indicating the declining popularity of the token in the cryptocurrency market.

According to AMBCrypto’s analysis of the SOL chart, SOL is rapidly approaching the key support level of $142. If Solana manages to test this support level, investors can expect a rebound.

However, a break below this level could prove disastrous.

What direction is Solana headed in?

To understand what to expect from SOL in the short term, AMBCrypto analyzed Santiment data. We found that SOL’s open interest has fallen along with the price.

The decline in this metric indicates that the current price trend is unlikely to continue, suggesting a trend reversal.

However, SOL’s Funding Ratio was high and seemed to be quite alarmed by the token’s price movement. In addition, the Long Short Ratio of Solana was lower, indicating a bearish bias in the market.

If these indicators are to be believed, the price of SOL could fall below the support level of $142.

The Relative Strength Index (RSI) also recorded a decline and continues to have a bearish bias. However, some indicators have brought the needed relief.

For instance, MACD has shown a bullish bias. In addition, after the sharp fall in Solan, the Chaikin Money Flow (CMF) recorded several “mouths” indicating a possible rise in price.

Bitcoin

Bitcoin

$68,265.63

BTC -1.92%

Ethereum

Ethereum

$3,834.72

ETH -1.40%

Binance Coin

Binance Coin

$600.93

BNB -0.61%

XRP

XRP

$0.53

XRP -1.25%

Dogecoin

Dogecoin

$0.16

DOGE -2.30%

Cardano

Cardano

$0.46

ADA -2.14%

Solana

Solana

$169.89

SOL -0.37%