Solana Price Prediction: SOL Recovers But Price Action Favors Drop to $110

Solana (SOL) has booked a 3.2% gain in the past 24 hours after a strong drop pushed the token below $140 during the weekend.

Trading volumes surged above the average on Sunday as the price neared the $125 level. As a result, SOL has bounced before touching this key threshold and the week has now started with a positive tone.

However, the situation in the Middle East remains highly volatile now that the United States has gotten involved in the war between Iran and Israel.

In the past 7 days, SOL has accumulated a 14% loss while top meme coins within its ecosystem including SPX6900 (SPX), Bonk (BONK), and Fartcoin (FARTCOIN), have dropped by 34%, 20%, and 27% respectively.

On-chain data indicates that Solana DEXs have experienced a 16.6% drop in their weekly trading volumes as interest for this type of asset has waned in this unfavorable backdrop.

Fear and Greed Index – Source: CoinMarketCap

Meanwhile, the Fear and Greed Index has dropped to 37, meaning that investors are now in ‘Fear’ mode. This marks another fast and radical shift in market sentiment as, just a month ago, this metric stood at 76, which indicated a greedy attitude.

In this challenging environment, can Solana recover some of the territory it has lost lately or does the price action favor further downward movements?

A Rejection of the $140 Support Would Confirm a Bearish Outlook

Looking at the daily chart, the price action has broken below the $140 level, which had acted as a key support level lately.

This area has not been retested yet and could be where SOL is heading now if it continues to recover. However, the price trend is now bearish and favors a negative outlook.

SOL/USD Daily Chart (Binance) – Source: TradingView

The short-term exponential moving averages (EMAs) have made a ‘death cross’ with the 200-day EMA and are now pointing downwards.

A rejection of a move above $140 will confirm a bearish outlook that could end up pushing SOL to the $110 level. The next support to watch would stand at $125, at which point the price action will confirm if the downtrend will continue in a similar way – breakout + retest and rejection = continuation.

Momentum indicators also favor a bearish prediction as the Relative Strength Index (RSI) currently sits at 37 and below the 14-day moving average.

Key Levels to Watch for Solana at Lower Time Frames

Moving to the hourly time frame, the $128 level seems to be the most relevant support to watch in the next few sessions as the price made a double bottom at this level.

SOL/USD Hourly Chart (Binance) – Source: TradingView

In this time frame, we can see that a ‘golden cross’ has occurred between the 9-period and 21-period EMAs.

In addition, the Relative Strength Index (RSI) is in an upward trajectory, meaning that the uptrend has gained strength and seems to have every intention to hit the $140 support – now turned into resistance.

In addition, the fact that the 200-period EMA currently sits near $140 confirms the relevance of this level from a technical standpoint.

Now that the most relevant levels have been mapped out, traders could either expect a retest of $140 to position themselves for an upcoming drop or wait for a bearish breakout below $128 with the expectation that the price will retest $125 first and then, maybe, drop to $110 if that level is broken as well.