- Solana dips below $240: Can it recover or keep falling?
- ETF delays and profit-taking pressure Solana’s price action.
- Will Solana hold support or risk a deeper price drop?
Solana (SOL) has been riding a wave of volatility this week, seeing its price surge past $250 before taking a sharp downturn to around $234. SOL has fallen by 3.47% in the past 24 hours, though its 9.15% growth in the week is a strong indicator of momentum.
Having an active trading volume of up to $9.78 billion and a market capitalization of $127.24 billion, Solana is still among the most actively traded cryptocurrencies. The market is, however, experiencing a bit of turbulence, and there are concerns about whether Solana can sustain some major support levels or whether it will continue to decline.
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ETF Delays and Profit-Taking Contribute to the Pullback
Despite significant institutional backing, such as Galaxy Digital’s acquisition of 1.2 million SOL tokens worth $306 million, Solana has faced a temporary setback. The fact that the SEC has not yet decided on the Solana ETF applications has brought some uncertainty to the market, which has made the speculative inflows smaller, and the institutional enthusiasm has waned.
To top this, long-term holders are also shifting their coins to exchanges, which is an indication of profit-taking following a healthy rally. All these have contributed to the pressure exerted on the price of Solana, pushing it to lower levels of key support.
On the 4-hour chart, technically, Solana just pierced a bullish trend of the rising wedge, which is a bearish pattern that tends to be corrected by 10%-15%. The lower price was below the support zone of the cost of $ 240, which had earlier brought a stable position.
The traders are currently targeting the support level of $231.87, which converges to the 23.6% Fibonacci retracement level. If Solana does not retain this range, then it may experience further declines, and the next support level is at $213.20. In the worst case, SOL could dip as low as $176.69.
What’s Next for Solana’s Price?
The MACD indicator still shows a bullish crossover, but momentum is fading, indicating that the buying pressure may be losing strength. The current RSI is at 49, which suggests that there is no strong feeling or sentiment in the market. Traders are monitoring the 30-day SMA at 207.07 in case of stabilization, in case the prices keep falling.
On the positive side, the 252 barrier level is still very important. Breaking strongly above this level would lead to a resurgence of buying strength, and the next big area of interest will be at the level of 300. Solana will be required to protect its critical support levels in the meantime, which will be decisive in its next action.
With the ETF situation still in limbo and profit-taking on the rise, SOL’s path forward will depend largely on its ability to stabilize in the short term.
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