Solana's Uptrend Stalls, Whales Exit...A Fierce Battle to Defend $85

▲ Solana (SOL)/ChatGPT generated image

Solana (SOL) failed to settle at $90, turned bearish, and is now engaged in a perilous struggle to defend the psychological bottom line of $85.

According to crypto-specialized media NewsBTC on April 22 (local time), Solana has been under downward pressure after its recent attempt to break past $90 failed, continuing a tough battle near the key support level of $85.50. Analysts diagnosed that Solana has entered a bearish phase, failing to ride the rebound trends of Bitcoin or Ethereum, and giving up the $88 and $87 support levels in succession. Currently, Solana is trading near $86, intertwined with the 100-hour simple moving average.

Technical indicators also clearly show bearish signals for Solana. The hourly Moving Average Convergence Divergence (MACD) is accelerating in the bearish zone, and the Relative Strength Index (RSI) also remains below 50, indicating that buying momentum has been exhausted. In particular, the fact that the price is staying below the Fibonacci 23.6% retracement line for the decline from the $89.34 high to the $85.55 low is further dampening investor sentiment.

To reverse the trend upwards, breaking the first resistance line near $87.80 is paramount. This area, coinciding with the Fibonacci 61.8% retracement line, is expected to be a watershed for determining the return of buying power. If it succeeds in breaking past the $88.80 resistance barrier, it could attempt to reclaim $90 and potentially surge to the $92 mark. However, if it fails to break through the resistance zone, the $85.50 and $84 support levels could be threatened in succession.

Downward risk remains open. Concerns are emerging in the market that if Solana fails to defend the $84 support level, it could plummet to $82 and then to $80. The currently formed upward trendline is being tested for support near $85.50, suggesting that the price movement within the next few hours will be a key variable in determining the short-term direction.

Ultimately, Solana's fate hinges on how firmly it defends the $85.50 support level. If buying forces succeed in defending this zone, a new recovery rally can be expected, but if they fail to overcome selling pressure, further declines and investment losses are inevitable. Virtual asset investors worldwide are closely watching to see if Solana can overcome its technical crisis and restart its engine towards triple-digit price levels.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*