Solana Price Plummets Below $130 Level as Selling Pressure Continues

• The price of Solana has plunged below the $130 psychological barrier.
• If the price falls below $126 level, then it will likely test $120 support level.

The CEO of Helius Labs, the development platform for Solana, Mert Mumtaz, recently provided an update that gives the Solana ecosystem cause for optimism.

Without the need for layer-2 networks, Mumtaz said in an X (formerly Twitter) post that “ZK compression” is being implemented directly on the Solana network. According to him, this completely alters one’s perspective on Solana and the scalability of layer-1 networks.

Price Broke Below the Psychological Barrier

Due to widespread market instability, the price of Solana has plunged below the $130 psychological barrier. Thus, sending short-term traders and investors into a frenzy. With a dive that has pierced the 200-day exponential moving average, the long-term trend is now negative.

Solana recently fell after failing to make progress around the psychological $150 mark. The price dropped close to its yearly low of $130 due to the heavy selling pressure. With a price drop of more than 23.78% so far this month, SOL might potentially hit the $100 demand zone.

Over the last few days, SOL’s RSI (Relative Strength Index) has also dropped significantly. At the time of writing, it was below the 40 level. Suggesting that SOL could be somewhat oversold and might soon see a reversal.

At the time of writing, SOL is trading at $128.47, down 3.56% in the last 24 hours as per data from CMC. Moreover, the trading volume is up 281.63%. If the price manages to go past the $132 resistance level then it will climb further to test the $136 mark. However, if the current bearish momentum continues and price falls below $126 level, then it will likely test $120 support level.