Solana Succumbs to Bearish Momentum as Price Falls Under $90

• At the time of writing, SOL is trading at $88.34, down 5.31% in the last 24 hours.
• If the price manages to go under $87.4 level then it will likely test $73.2 support level.

Notable cryptocurrencies began the week on a negative note as investors worry about potential huge bitcoin sales and are likely reducing their market exposure in preparation for potential price drops.

“I think we break $40k,” BitMEX co-founder Arthur Hayes said in a fresh Bitcoin price forecast released on Monday. This shift in attitude is in reaction to the impending quarterly refunding statement from the US Treasury.

Investors Sentiment Rattled

Surprisingly, after a strong bullish run from September to December of last year, Solana experienced a period of turbulence. Investors are on the brink of catastrophe as the once-surging token has seen a gradual fall over the last three weeks.

The excellent success of SOL has been the subject of much praise, and the cryptocurrency has had a meteoric rise of 500% since October 2023, with a 105 percent increase in December alone. However, a decline in SOL’s value over the last few weeks has rattled investor sentiment.

Yet, net inflows are being seen by other bitcoin ETFs that have recently been authorized. According to statistics maintained by CoinGlass, the IBIT ETF from BlackRock and the FBTC ETF from Fidelity both surpassed $1 billion last week, suggesting that purchasing pressure is increasing.

At the time of writing, SOL is trading at $88.34, down 5.31% in the last 24 hours as per data from CoinMarketCap. Moreover, the trading volume is up 45.62%. 

If the price manages to go under $87.4 level then it will likely fall further to test $73.2 support level. On the other hand, if the price manages to go above $95.1 level, then it will likely test $99.1 resistance level.