Key Insights:
- Solana faces a critical test at $200, with further declines likely if the 50-day EMA at $206 fails to hold.
- A drop below the 100-day EMA at $193 could signal a prolonged correction, potentially targeting $180.
- The volume profile shows steady distribution, with bears maintaining control but without triggering a sharp collapse.
Solana has entered a critical correction phase, with its price sharply declining from recent highs. The cryptocurrency is currently trading just above $210, triggering increased selling pressure. The next major test comes at the $200 mark, which many traders and analysts are closely watching. If the selling momentum continues, the $200 support level may not hold for long.
Solana’s immediate technical support is found at the 50-day exponential moving average (EMA), which is currently positioned at $206. If the token fails to stabilize above this level, the price could quickly move toward the 100-day EMA at $193. This level is a stronger support zone and marks a key retracement region. A drop below $193 would suggest a more prolonged correction, with $180 emerging as the next potential target for Solana.
Volume Profile Shows Steady Distribution
Despite the price drop, market sentiment remains mixed. The volume profile indicates that selling activity is steady but has not yet reached levels of extreme capitulation. Instead, the market appears to be in a phase of gradual distribution, with bears maintaining control without driving the price into a sharp collapse. This suggests that further losses could unfold slowly, with weaker support levels eventually giving way under sustained selling.
Momentum indicators confirm the ongoing bearish trend. After reaching overbought levels in early September, Solana’s Relative Strength Index (RSI) has now dropped to neutral territory. This shift signals a waning of bullish momentum, suggesting that the potential for further declines remains high. If the price fails to recover, Solana could face additional downward pressure in the near term.
Bulls Need $221 to Reverse Momentum
To reverse the current bearish outlook, bulls must reclaim the $221 level, which marked the most recent breakdown point. Until this happens, the prevailing market sentiment remains negative, and the path of least resistance appears to be downward. Without a strong recovery from current levels, Solana’s rally seems to have stalled, increasing the likelihood of further losses in the short term.
