The cryptocurrency had been moving within an upward trend since 2023 but has now broken below the lower boundary of this pattern. This signals a shift in market sentiment, with sellers gaining control.
For over a year, SOL followed an ascending parallel channel, where prices moved between two upward-sloping trendlines. The lower trendline provided support, stemming huge declines. But dipping below this level suggests selling pressure has been more than buyers, and the possibility of further declines is enhanced.
To complement the bearish mood, SOL has recorded negative Elder-Ray Index readings since January 27, with the latest reading standing at -30.4. The indicator reflects the relative strength of buyers and sellers. A negative reading signifies that bears are dominant, adding more pressure to the price decline.
When buying pressure continues to drop, SOL could go as low as $136.62, according to the Fibonacci Retracement indicator. If support breaks, it can drop down to $120.72, a level which was last in September.
However, if demand for SOL rises again, the bearish trend could reverse. A strong recovery could push the price back toward the lower trendline of the ascending channel, with a potential move up to $220.58.
