Solana risks a dip to $65 as bearishness persist

• SOL has declined nearly 38.74% over the past months.
• With Solana experiencing strong bearish sentiments, analyst see a dip to $65.

Over the past day, Solana [SOL] has experienced a sharp decline, hitting a 5-month low of $131. This drop extends a month-long bearish trend which has seen SOL make significant losses on its price charts.

At the time of writing, Solana was trading at $141, marking a 38.74% decline over the past month. 

Amidst this drop, Solana’s market cap has also fallen to a 5-month low of $69 billion. This sustained decline has left key stakeholders discussing the altcoin’s future trajectory.

Inasmuch, popular crypto analyst Ali Martinez has suggested a potential dip to $65.

Market sentiment suggests…

In his analysis, Martinez noted that Solana appears to be forming a right-angled ascending broadening pattern.

Usually, this pattern signals growing market volatility and the potential for strong price movements. The pattern consists of higher highs and a horizontal support, forming an expanding wedge shape.

A breach below this pattern could result in a sharp price decline.

Source: X

Therefore, Martinez noted that if Solana breaks below the $130 support level, it could result in strong bearish movement, with SOL hitting a low of $65.

Such a drop will send SOL to a 14-month low, a price level last witnessed in December 2024.

Is Solana set for a further dip?

According to AMBCrypto’s analysis, Solana is currently in a strong bearish phase. The prevailing market conditions position SOL for further losses on its price charts.

Source: TradingView

For example, Solana’s Relative Strength Index (RSI) has dropped to reach oversold territory at 26. Such a drop in RSI suggests that Solana is currently experiencing strong selling pressure, with sellers dominating the market.

This dominance is further validated by CMF, which has remained negative over the past three weeks.

Source: Artemis

Additionally, Solana’s Total Value Locked (TVL) has been in a free fall, dropping to a three months low of $7.3 billion. Such a decline in TVL implies that few users are currently engaged with the Solana network.

Thus, most users are transferring funds to stablecoins as they anticipate further price decline, reflecting strong bearish sentiments.

Source: Coinalyze

This decline in market participants is further confirmed by a strong decline in aggregated open interest. This implies that investors have lost confidence in the market and are currently closing positions to cut their losses.

Simply put, Solana is currently experiencing strong downward pressure, and with bearish sentiments holding in the market, SOL could dip further.

Therefore, if the prevailing market conditions hold, SOL will find the next support around $128. However, if a trend reverses from here, the altcoin will first reclaim $155.