Solana has continued to see lows and breaching almost every single significant support level underneath. The entire market is seeing red at the moment and such a vital demand barrier could be the determining factor on if $Sol will rebound or lose further market value.
Over the past two weeks, the price of SOLD has seen a 26% drop and thus has reached a very pivotal point. Solana has the fifth-largest cryptocurrency by market cap and the coin has reached exhaustion following its all-time high of $259.90 on Nov.6 After this high, there has been a continuing trend of lows. At the writing of this article, SOL now sits at $195.98. It’s quite obvious the uptrend is over, but for how long?
Originally there were calls for SOL to reach $330 but with the recent events, that price thesis has been put on hold. Currently, the 50-day moving average at $192 represents the last support level for SOL to hold on to. Breaking through could encourage panic selling which would in turn accelerate the current downtrend, if this happens SOL would eventually drop to a 200-day moving average of $96, there is of course the possibility of a downtrend enticing investors to get back into the market and push SOL back towards the theorized $330.