Amid the rising crypto volatility, Solana is struggling with the ongoing correction phase. With its fourth consecutive bearish day, the SOL price trend is down to $171.09.
With an intraday pullback of 3.62%, Solana is putting crucial support levels at risk.Amid the growing supply pressure and recent Solana memecoin controversies, is the SOL price falling to $135? Let’s find out.
SOL Price Breaks Key Trendline: $135 on Charts
In the daily price chart, Solana marks multiple bearish events. With its four consecutive bearish candles, the SOL price trend has broken below the 200-day EMA line, the 61.80% Fibonacci level at $184, and a long-coming support trendline.
With multiple breakdowns, the SOL price recently tested the 78.60% Fibonacci level at $162.87. Currently, with a minor pullback, Solana is back above $170, with the lower price rejection hinting at a potential retest.
With the breakdown rally, the 50-day and 100-day EMA lines are on the verge of giving a bearish crossover. However, the daily RSI line has reached the oversold boundary level, which resulted in a bullish reversal last time.
Solana Network Slowdown Raises Red Flags
Increasing the chances of a breakdown, Ali Martinez, a crypto analyst, has highlighted multiple changes in the Solana network. Firstly, the total volume transferred over the Solana network has seen a significant drop since November.
It has fallen from $2 billion to just $26 million over the past few months. Furthermore, the number of active addresses on the Solana network has dropped from 18.5 million to 8.4 million.
This marks a significant slowdown in the Solana network and warns of a massive crash if the demand fails to resurface.
Solana Price Targets
The lower price rejection in today’s candle supports the chances of a bullish comeback. However, the massive overhead supply pressure near the $180 supply zone will likely result in a post-retest reversal.
As per the Fibonacci levels, the post-retest rally in Solana is likely to break under the $162 support level. In such a case, the next support levels for Solana stand at $135 and the $100 psychological mark.
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