Key takeaways
- SOL has failed to push above the 20-day EMA and could now test the $140 support level.
- If the bulls fail to defend the $140 support, SOL could dip further towards $123 in the short term.
SOL dips 1% amid broader bearish performance
This has been a net negative week for the cryptocurrency so far. The ongoing Middle East crisis has wiped out billions of dollars from the crypto market over the past few days, and more downward correction is expected.
One of the worst performers among the top 10 cryptocurrencies by market cap is Solana (SOL). The coin has lost 8% of its value over the last seven days and could face further downward movement, fueled by market fundamentals and technical signals.
The bearish performance coincides with Bitcoin and other major cryptocurrencies underperforming. If the Israel-Iran conflict continues, SOL could record further losses in the coming days.
The neutral interest rate decision by the U.S. Federal Reserve on Wednesday also didn’t help SOL and other major cryptocurrencies.
Bears target the $140 support level
So far, the bulls have done an excellent job in defending SOL’s price around the $145 level. However, the cryptocurrency’s price action remains bearish and could test the $140 support level in the coming hours or days.
Buyers pushed SOL above the 20-day EMA ($154) earlier this week. However, they couldn’t clear the 50-day SMA ($160) hurdle. This resulted in the bears pushing the price down towards the critical $140 support level.
If the $140 level fails to hold, the SOL/USDT pair will complete a bearish H&S pattern and could eventually drop to the next support levels at $123 and $110. The RSI at 42 indicates that SOL is edging into the oversold territory.
However, if the bulls regain control and push the price above the 50-day SMA, it suggests strong buying near $140. SOL going above the 50-day SMA could keep the price between $140 and $185 for a while. The market will switch bullish once SOL closes above the $185 psychological level.
