Solana (SOL) is displaying indicators of weak spot after a quick rally, with its worth slipping to round $146. The asset is now dangerously near the essential $140 assist degree, a line bulls are determined to defend. A breakdown under this degree might set off a retest of the 26-day EMA at $139, growing the danger of a deeper correction.
Regardless of rebounding strongly from March lows, Solana has failed to beat resistance on the 100-day and 200-day transferring averages, sitting at $151 and $162, respectively. This resistance confluence has capped current upside momentum. In the meantime, the RSI has flattened close to 58, revealing a bearish divergence and weakening worth power.
Technical indicators are flashing warning. The dearth of follow-through on current inexperienced candles, mixed with declining volatility and quantity, suggests waning demand. As SOL struggles to take care of upward momentum, merchants seem like reserving earnings close to resistance ranges. If the $140 zone fails to carry, the subsequent seemingly goal is $131, aligning with the 50-day transferring common and a historic assist zone from earlier consolidation.
General, Solana’s worth construction suggests a possible distribution section slightly than a setup for additional good points. The rally from early April has misplaced steam, and with out a notable uptick in quantity or recent catalyst, the short-term outlook stays bearish. To regain bullish momentum, SOL should flip $151 into assist with robust shopping for curiosity. Till then, the danger of additional draw back persists as the token hovers simply above important technical ranges.
This development underscores a broader hesitation within the crypto market, the place buyers are cautious amid declining momentum and resistance-heavy worth zones. With out renewed curiosity, Solana might revisit key transferring averages it lately fought exhausting to reclaim.
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