SOL prices dip below key support after rejection at $136.18

TL;DR Breakdown

• The Solana price analysis is bearish
• SOL prices have declined below previous key support at $130.0
• Solana is currently trading at $126.14

The Solana price analysis reveals the prevailing downtrend for SOL prices as a dip below the key support level has been noted. According to the 4-hour chart, a descending triangle pattern has been formed, which is bearish for SOL prices. The sell signal was given when prices dipped below $130.0, and a target price of $115.0 has been set. Solana prices are down by 5.32 percent as the trading volume declines by 4.55 percent which now totals $2,625,719,106.83.The Solana prices have established support at the $122.02 level.

Solana prices had been in a brief bullish spell before a break out downwards was seen. Prices had surged to highs near $136 before rejection was seen, leading to the bearish move. The descending triangle pattern is formed when the price creates lower highs while the lows remain constant or create higher lows. This forms a sloping line that can be extended downwards, which is called the bearish trendline. The break below the key support level of $130 has given a sell signal for Solana, with a bearish target set at $115.

Solana price action on a 1-day price chart: Bears in control as prices dip below key support

The 1-day price chart for Solana price shows the bears are in control as prices have dipped below the key support at $130.0. The current sell-off has seen prices retrace by over 5 percent from the highs near $136.0. The previous support-turned-resistance level at $130 will now act as a key resistance level to watch out for.

The RSI indicator is currently in the oversold territory but looks to be heading towards the neutral zone. The MACD indicator shows decreasing bullish momentum as the signal line moves above the histogram. The moving averages are bearish as the 50-day MA ($142.62) is below the 200-day MA ($151.09). However, there is high market volatility as reflected by the widened Bollinger Bands.

Solana price action on a 4-hour price chart: Descending triangle pattern seen

The post-mortem of the recent bullish move for Solana reveals that it was short-lived as prices have declined sharply. The corrective move had seen SOL prices decline to levels near $130 before a minor rebound was observed. However, the rebound was short-lived as prices dipped below the key support level and currently, SOL prices are down by over 5 percent.

The Relative Strength Index is currently seen heading towards the oversold levels, which indicates that selling pressure might ease off in the near term. However, the MACD indicator shows sustained bearish momentum as the MACD line is seen trading above the signal line. Moreover, SOL prices are declining as indicated by the 50-day MA ($134.55) being below the 200-day MA ($142.53).

Solana price analysis conclusion

The Solana price analysis shows a bearish continuation as prices have dipped below the key support at $130.0. The descending triangle pattern is a bearish reversal pattern, and the break of the support has given a sell signal for Solana. The target price set is $115.0, which if reached will see a decline of over 14 percent from the current levels. Finally, we can say that the market is bearish for Solana as the moving averages, indicators, and chart patterns all point to lower prices.

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