After hitting a historic peak of $295.83 on January 18 (29 Dec 1403), Solana (SOL) entered a downward trend and is currently trading at $171.81, indicating a 41% drop from that time. Solana had been trading in an uptrend channel since June 2023, but for the first time in the past year, this channel has been broken downwards. Upward channels form when the price moves between two trend lines and represent a stable trend with higher highs and higher lows. Breaking below the lower line of the channel indicates a trend change and increased selling pressure, suggesting the possibility of further price declines. The negative Elder-Ray indicator, measuring buyer and seller strength, has been negative since January 27, currently showing -30.4, indicating high selling pressure and seller dominance in the Solana market. The daily SOL chart suggests that if buying pressure decreases, Solana’s price could drop to $136.62. Failure to hold this support level could lead to further decline to $120.72, last seen in September 2023. However, if demand for Solana increases, this bearish outlook will diminish. In this case, the price may attempt to revisit the lower line of the channel. If successful in returning to the uptrend channel, there is a possibility of a renewed uptrend to $220.58. On the live digital currency price page, you can view the prices of all tokens and cryptocurrencies live and in real-time.
