Solana (SOL) Hits a Key Decision Zone: Can Buyers Reverse the 5% Slide?

• Solana is hovering around $77, with 5% loss.
• The SOL downtrend is actively taking over the macro trend.

Both bulls and bears are present in the crypto market, with the broader sentiment of fear. Among the altcoins, Solana (SOL) suffered a 5.43% hit, currently trading within the $77.40 range. In the early hours, it traded at around a high of $82.67 and gradually ended up falling to a bottom level of $76.92, with the bearish shift.

In addition, the market cap is found at $44.97 billion, and the daily trading volume is settled at the $2.65 billion range. Moreover, the Solana market has experienced a liquidation of $23.98 million during the last 24 hours, according to the Coinglass data. 

The four-hour trading window of Solana reports a negative trend. The price could likely fall toward the $76 support range. A sturdy correction on the downside might trigger the death cross to form. The bears would then push the price action down to test the $74 zone. 

On the flip side, with a bullish reversal of momentum, the SOL’s price might jump and challenge the immediate resistance level at $78. Assuming the golden cross takes place with the bulls gaining more traction, the asset’s price could potentially climb higher above $80.

What Does Solana’s Technical Setup Convey?

Solana’s technical analysis exhibits a market in a state of transition and conflict, where the long-term trend is turning bearish. The Moving Average Convergence Divergence (MACD) is below the zero line. The faster moving averages have crossed negative, showing that the downward momentum is actively taking over the macro trend.

This is a bearish setup, and the aggressive price drop has broken the back of the previous uptrend. Also, the momentum has shifted to the sellers, and the market is likely headed lower.

(Source: TradingView)

Furthermore, the daily Relative Strength Index (RSI) reading is settled at 32.75, suggesting Solana is sitting right on the edge of oversold territory. It has endured significant selling pressure, but sellers still have a tiny bit of room left to push down before hitting absolute extremes. 

Significantly, for short-term traders, it’s too late to enter a short position and slightly too early to buy. 

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