Solana (SOL) has fallen below $150 from its high of $250 in September.
While this decline may cause concern among investors, technical analysis, or at least some of its interpretations, point out that: A time of consolidation rather than trend reversal; Financial market analyst Parshwa Turakhiya’s vision is as follows:
“The current price structure is consistent with a consolidation phase where the market digests past declines without clear signs of a bearish break,” he notes.
This number is supported by a sustained sales slowdown and increased price stability in the $130 region. This level begins to act as a support After a strong correction recorded from September highs.
“The sustained decline in outflows is consistent with the market beginning to stabilize after a severe correction,” Turakia added.
To counter his analysis, Turakia explains that Solana’s price is firmly below its main moving average (EMA).
At this point, let me clarify the following: Moving averages are technical indicators that track market trends.. It is constructed from historical prices by calculating averages, as explained in Criptopedia, the educational section of CriptoNoticias.
For example, in a 10-day moving average, each point on the curve represents the average price recorded by the asset during that period.
The following chart shows the 20-day, 50-day, 100-day, and 200-day moving averages, which analysts rate as the major moving averages.
As you can see, there was In recent months, the bullish trend has been gradually lost, resulting in a clearly bearish structure.
What does Solana’s technical analysis show?
The price is below the aforementioned exponential moving average, reinforcing the view of technical weakness.
“The 20-day EMA near $136 and 50-day EMA near $149 continue to fall, reinforcing the prevailing bearish trend. Above these, the 100-day EMA near $164 and 200-day EMA near $171 define the upper bounds of the medium-term bearish trend,” Turakia explains.
“As long as SOL remains below the 20-day and 50-day EMA, any bullish move should be considered a correction,” he added. “The trend remains unchanged.”
At the bottom, the relative strength index (RSI) in purple and the average value in yellow remain in the medium-low zone without reaching overshoot levels. This suggests the following: A market with no purchasing power and constant selling pressure.
In this regard, Turakia emphasized: “Overall, this graph reflects a supply-stressed market with a bearish bias and no technical support for a short-term reversal.”
But still, “the current stabilization suggests that selling pressure is no longer strong, even if buyers are not yet in charge. This confirms the story of consolidation, rather than an immediate continuation of the decline,” he concluded.
If this technical analysis is confirmed, the current level will be Could be an entry point for those seeking exposure to SOL. The key to this is that the price somehow manages to stay within the support zone and the selling pressure does not return.
In addition to technical analysis, it is important to consider fundamental analysis, that is, what is happening with this cryptocurrency on a technical and adoption level. For example, CriptoNoticias reported yesterday that Solana recently experienced the fourth largest denial of service (DDoS) attack in history, but was able to resist without changing its operations. We believe this action is potentially bullish news for SOL.
