Solana Drops 5% Below $169, is $158 Next?

Can Solana (SOL) sustain the support of around $159 after a third straight bearish day and a failed ascending channel?

As the cryptocurrency market fell 3.8% to $2.33 trillion this week, Solana has seen a sharp slump. Over the last day, the fifth-largest cryptocurrency in the market had a 5.05% decline, bringing its market value down to less than $78 billion.

Currently trading at $165.61, Solana is warning of a bearish continuation because of the wider market instability. Will Solana be able to recover this week despite the market meltdown conditions?

Will $159 Hold?

Solana has dropped 9.50% from its seven-day peak of $183.30 to its current market price on the daily chart, continuing its slump into the third day of correction. This is the third straight bearish candle with a 1.48% intraday decline.

At $169.49, the decline has broken through the 61.80% Fibonacci barrier. Solana’s price movement has failed to maintain momentum despite an inverted head-and-shoulder breakout, and it is currently moving toward the 50% Fibonacci level at $159.54.

The growing bearish influence is mirrored in the MACD and signal lines, which have crossed bearishly. However, the simple moving averages remain positive, helped by a recent golden crossover between the 50-day and 200-day SMAs.

Solana’s 4-Hour Chart

A sharp drop has resulted in noticeable bearish price activity on the four-hour chart. Notably, a rising channel pattern’s long-standing support trend line has been breached by Solana.

This signals the conclusion of the short-term correction rally and a potential decline to the four-hour chart’s 200 EMA at $156.62. In the meantime, two significant supports for Solana are located close to the $150 and $158 support zones.

Will Solana Remain Firm in the Market Crash?

Meanwhile, there is a greater chance of a swift turnaround because Solana had poorer price activity from the $158 support zone last week. The cryptocurrency finds rapid support close to the $165 barrier, which has held the Solana price steady since October 21. A possible retest of a broken trend line on the four-hour chart could occur in the event of a positive turnaround.

Potential short-term price goals include $169.49 and $188.65 if Solana makes a long-term recovery from the 50% Fibonacci level at $159.54 on the daily chart. Solana might also be able to surpass the $200 psychological mark before the end of the month.

Conclusion

Solana’s recent slump below key support levels amid a broader market pullback suggests that the cryptocurrency is experiencing downward pressure that could lead to further declines.

Breaking through critical Fibonacci retracement levels and the four-hour rising channel signals a potential continuation of the bearish trend, especially as momentum indicators like the MACD align with a downtrend. However, support around $159 could provide some stability, offering a potential pivot point for recovery if broader market sentiment improves.

In the near term, Solana might experience volatility between $150 and $169, with potential upside limited unless buying momentum strengthens, particularly near the $200 psychological barrier.