Will Solana Break Key Resistance or Fall to Support Levels?

• Solana faces resistance at $246 and support at $231.
• Potential bearish crossover between 50-day and 200-day MAs.

Solana (SOL) is trading at $235.69, marking a 3.11% decline in the past 24 hours. The cryptocurrency has a market capitalization of $111.87 billion, with a market cap ratio of 6.20%. Over the last day, trading volume has dropped 11.03% to $6.88 billion. Despite this dip, Solana remains the fourth-largest cryptocurrency by market cap, solidifying its role as a key player in the crypto ecosystem.

A recent surge in speculative activity caught the community’s attention. One trader turned 2 SOL ($462) into $988,000 within three hours through $QUANT, a live-streamed pump-and-dump token. This highlights the speculative frenzy in altcoins. 

A young creator launched the $Quant coin during a live stream and sold it for 128 $SOL ($30K), earning a profit of $29.6K. The 51 million $Quant he sold is now valued at $4 million. He later created $lucy and $sorry coins, selling them for an additional profit of 103 $SOL ($24K).

Solana in the Current Market

Based on current price action, Solana’s immediate resistance lies at $246. If the price breaks above this level, the next potential target is $260, a level that aligns with historical price action and Fibonacci retracements. However, failure to surpass $246 could keep the price consolidated in a narrow range.

On the downside, support is firmly established at $231. If SOL breaches this critical level, the price could decline further, with the next significant support zone around $220. Such a drop might test traders’ confidence in maintaining bullish positions.

The RSI currently stands at 50.80, slightly below its average of 64.14. This reflects a weakening of bullish momentum, as the RSI moving toward the neutral zone suggests a balance between buying and selling pressure. A sustained RSI below 50 would indicate a shift in market sentiment toward bearishness, potentially signalling further downside movement.

Solana’s 50-day moving average (MA) is at $241, while its 200-day MA is at $225. The narrowing gap between these two levels signals a potential bearish crossover. If the 50-day MA crosses below the 200-day MA, this would confirm a “death cross,” a historically bearish signal that often precedes extended downtrends.

However, the price remains above the 200-day MA, indicating that the long-term trend is still positive. Traders should closely watch for this crossover, as it could significantly influence Solana’s near-term trajectory. If Solana manages to break above $246 and hold that level, the price could aim for $260, with a potential extension toward $275 if bullish momentum accelerates.

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