Solana’s Price Drops 11% as Crypto Market Faces Selling Pressure

• The SOL price faced strong resistance after reaching the $45 mark on November 2.
• If the present downfall continues and price goes below $38 then it will likely test $36 level.

Despite the recent price slump, Solana has shown incredible resiliency in continuing its upward trend. Recent on-chain statistics shows that the cryptocurrency ended October with a 61.58% rise.

The overall crypto market has been trading in red lately with the price of Bitcoin down 3.17% in the last 24 hours, currently trading at $34,295. Although the exact cause is unknown, it is likely that investors are taking gains after the recent upswing.

The former CEO of the defunct FTX, Sam Bankman-Fried, was tried in Federal Court in Manhattan for a month before the jury returned a guilty conviction. Given the close relationship between FTX and SOL, this update may explain the current price drop.

Moreover, historical market data shows that following a sustained gain, investors often take profits and the market moves sideways for a while. The present scenario in the market may reflect a similar tendency.

Bulls Losing Control

Despite the present optimism, it is important to note that SOL is now in an overbought situation with a reading of 73, according to the RSI. When this happens, it usually means the market is about to settle down or retrace.

At the time of writing, SOL is trading at $38.81, down 11.12% in the last 24 hours as per data from CoinMarketCap. Moreover, the trading volume is down 33.55%. The price faced strong resistance after reaching the $45 mark on November 2.

If the price manages to go past $41.6 resistance level then it will likely retest the $45 level. Breaking above this level, will likely see price testing $46.8 level. However, if the present downfall continues and price goes below $38 level then it will likely test $36 support level.