You are here: Home / News / Solana SOL Price Analysis: Last Defense Line at $140 Against Bearish Trends
May 16, 2024 by Ammar Raza
Solana (SOL) is currently attracting significant interest and witnessing a surge in its value. This upward movement is in response to a bullish market sentiment, prompting SOL to climb. However, it’s important to note that the overall trajectory of Solana’s price is bearish, as indicated by analysts who are outlining potential scenarios.
At the time of writing, Solana (SOL) is worth $151.89. The asset has had a trading volume of $5.15 billion over the last 24 hours and is currently carrying a market capitalization of $68.15 billion. Over the past 24 hours, SOL has experienced a 3.58% increase in its price.
Solana’s Last Line of Defense at $140
Crypto analyst Alan Santana has provided analysis that sheds light on how Solana is likely to chart going forward and emphasizes the key role of the Exponential Moving Average 100 in the chart. According to Santana, the moving average is considered a basic technical analysis tool, with several indicators often applied, such as the Relative Strength Index.
According to Santana’s observations, in September 2023, Solana’s behavior was bullish after the break of the EMA 100 indicator. This breakout proved that there is a possibility of market sentiment changing towards Solana’s favor.
In addition, October 2023 came the critical test of the EMA 100 as a support, and again, it was passed by Solana without concerns. This adds to the experience of the reliability that the EMA 100, as a key reference point for traders and investors, carries with it.
From October 2023 to March 2024, SOL was in a consistent uptrend and traded far above the EMA 100, indicating healthy market performance. However, the recent development has made the optimistic outlook turn otherwise.
The analyst observes that there has been a very clear shift in market sentiment, which has sparked a change in direction for Solana over the short to mid-term. Effectively, SOL has now been in a bearish phase going on close to two months after a reversal of its prevailing previous bullish trend.
As far as prices staying stable, the EMA 100 would actually be the last level of defense that could possibly be drawn for SOL. For it is currently standing at $140, it turns out that the EMA 100 is absolutely crucial support. Santana cautions that if this level is violated, investors should see an almost immediate significant downturn in SOL, possibly falling below $100.
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