Solana Price Forecast: Will The Bearish Market Dominance Plunge SOL To $120 This Week?

Solana price forecast: SOL has seen a notable decrease, breaking below the $150 resistance barrier. This decrease marks a 3% drop in Solana price over the past day, settling at $141.97. Currently, Solana market capitalization stands at approximately $63.6 billion, positioning it as the fifth-largest cryptocurrency by market cap.

Trading activity has surged alongside this price change, with a 24-hour trading volume of approximately $2.23 billion, marking an 11.17% increase. This volume represents about 3.48% of the total market cap, indicating active trading. 

Solana Price Forecast: SOL’s Recovery from Recent Losses Possible?

Over the past week, Solana has experienced a 7% increase, showing signs of resilience. This recent upward trend contrasts with its substantial 18% drop over the past few months. The cryptocurrency had previously fallen below the critical support level of $175, signaling a bearish phase. 

Currently, the price fluctuates between $130 and $157. Both bulls and bears are actively contending, with neither side establishing clear dominance in the market.

Over the past 24 hours, most of the cryptocurrencies have seen slight market corrections, with Bitcoin and Ethereum seeing decreases of around 2% and 1%, respectively. This pullback reflects broader concerns about regulatory developments and investor sentiment in the digital asset space.

Impact of FTX Debacle on Solana

According to CoinGlass, Solana’s value has declined 5% in just one day due to ongoing concerns about potential sell-offs linked to FTX. Market analysts indicate that $125 million could be at risk should Solana recover as it has in previous instances. 

This recent price drop coincides with a significant 40% reduction in Solana’s open interest. The total open interest now stands at $1.78 billion as of May 9, a decrease from higher levels seen 30 days ago.

If bears mount more pressure, the Solana price could hit a support level of $130. If this level fails to hold, a further decline toward $120 could be imminent, signaling increased bearish sentiment in the market.

Conversely, if bulls regain control and propel a recovery, SOL could approach the $160 resistance. A sustained move above this could signal a bullish trend, possibly elevating the cryptocurrency towards $180. Stability at this level might pave the way for an advance to the $200 zone.

The technical indicator of Solana’s price movement shows a period of fluctuating performance. The Moving Average Convergence Divergence (MACD) shows a slight narrowing between the MACD line and the signal line, suggesting a possible decrease in bearish momentum. 

However, the MACD histogram remains below the baseline, indicating that the market could still be favoring the bears slightly. 

The Relative Strength Index (RSI) stands at 45.80. This value indicates that Solana is neither overbought nor oversold, providing a neutral signal to traders. Additionally, the Chaikin Money Flow (CMF) indicator sits close to zero at 0.04.

The post Solana Price Forecast: Will The Bearish Market Dominance Plunge SOL To $120 This Week? appeared first on CoinGape.