Will Solana Bearish Trend Continue After an 18% Monthly Drop?

• Solana’s price hit a month-low of $122, hours ago.
• Scammers exploit Solana’s token extension to burn users’ crypto holdings.

The cryptocurrency market remains in a bearish phase, with the total market capitalization dropping by 4.33%, while trading volume has risen by 17%, reflecting increased activity despite the downturn. Bitcoin, the largest cryptocurrency by market cap, fell by 4.66%, leading a broader decline in altcoins. Ethereum dropped by 6%, hitting a 28-day low of $2,313. Solana, another prominent altcoin, also hit a monthly low of $122, marking an 18% decline over the past month.

Solana has faced strong bearish pressure for over a week, intensifying its monthly downtrend. Traders were largely prepared for this drop, especially as Solana’s funding rate turned negative around August 28, indicating expectations of further declines. The consolidation range between $126 and $160 has become a focal point for short-term traders, who view it as an opportunity to capitalize on the price fluctuations.

In the midst of this bearish sentiment, scammers have reportedly found a new way to exploit Solana users. According to Slorg, a member of Solana-based Jupiter’s Core Working Group, scammers have begun using an in-built Solana token extension to stealthily burn users’ tokens within seconds of purchase, adding to the challenges faced by the Solana community.

Can SOL Recover From Bearish Pressure?

On the technical front, the daily chart shows Solana entrenched in a bearish trend. The 9-day Exponential Moving Average (EMA)  at $135 and the current price at $128. The daily Relative Strength Index (RSI) stands at 37, indicating strong selling pressure.

Looking forward, if bullish momentum builds, resistance levels could be encountered at $138 and $149. However, if the bearish trend persists, Solana may see a further decline, with potential support at $120. 

Traders and investors are closely monitoring these SOL price levels for signs of sustained bearish momentum or potential bullish reversals in the coming days.

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