Solana (SOL) has rebounded significantly, posting gains of over 15% and trading above $140 at the time of writing. This recovery comes after a severe downturn in the broader cryptocurrency market, which saw a 16% crash in the previous session due to geopolitical tensions and Japan's interest rate decision. Bitcoin (BTC) also experienced a decline after a brief rally.
Solana, the fifth-largest cryptocurrency by market capitalization, breached its critical support level of $121 on Monday, causing widespread concern within the crypto community. The trading volume for SOL has surged to $9,400,101,562, indicating a high level of investor activity in response to the price drop.
Solana (SOL) has been under pressure lately as big investors, or “whales,” have moved around 2.38 million SOL, worth $307 million, to centralised exchanges (CEXs) like Binance and Coinbase. This big movement pushed SOL below $125 and broke the $118 support, adding to the bearish sentiment around Solana. Trading volume increased by 235% during this period as traders reacted to the change.
Experts say this recent dip in Solana’s price is not a natural correction but a whale manipulation. A Coinbase angel investor recently posted on X (formerly Twitter) that these whales create fear among newbies and make them sell at a loss. This panic selling gives the whales an opportunity to buy back Solana at a lower price and make money from the fear market.
The price is currently trading below the crucial 200 Exponential Moving Average (EMA) on a daily timeframe. A daily candle close below the $122 mark could trigger a further 30% drop, potentially driving the price down to $77. On the other hand, a strong close above $144 might signal a potential reversal, with the price possibly climbing back to $155.
Solana (SOL) is bouncing back after a big drop and is trading around $140. The daily chart shows SOL has broken above $140 resistance so we might be seeing a reversal. RSI is at 39.37 which is not oversold yet. The MACD is still in the red with the MACD line at -3.73 and the signal line at 2.27 so the bearish momentum hasn’t gone away yet.
Despite the bounce SOL is facing resistance at $144, $153, $159, $170 and $183. These could be hurdles for any short term bounce. On the downside the support zone between $120 and $128 is critical. If SOL can’t hold above $118 it could drop to $83.
Solana has bounced back strongly and is trading at $140 right now. 15% up in the last 24 hours. Today’s live Solana price is $141.18.In broader markets, Bitcoin (BTC) jumped above $56,000 this morning in Asia as the market recovered. After Monday’s big drop, the bargain hunters stepped in and BTC is up 6% today, its biggest 24 hour gain since May. Other major cryptos are also up, ETH is up 8%, XRP is up 8%, BNB is up 12% and Solana (SOL) is up 16%.
Josh from Crypto World said Solana is holding above the $120-$128 support zone even after dipping below it. The daily RSI looks like Solana found a local low similar to Ethereum and Bitcoin. With resistance ahead at $153, $159, $170 and $183, a short term bounce for Solana is unlikely unless it can hold above the current support