Solana On The Brink? Price Stalemate At Crucial $140 Support

The fast blockchain network Solana (SOL) is having a balancing act. Although there is a temporary price increase, experts caution of a possible crash should a fundamental technical level fall.

Bullish Flicker Amidst Bearish Gloom

With a recent increase of 3.60%, now ranges roughly at $162. Still, this apparently positive development is against the background of a more general declining tendency. Analyses link this change in market attitude to this movement.

The RSI of the altcoin is 48, which points to a neutral posture in meantime. SOL is therefore not overbought or oversold, hence it has space to move in both directions.

Typical of times of consolidation, declining trade activity has been noted. Rising trade volume after a breakout should validate the trade’s direction.

Lifeline Or Looming Abyss?

Alan Santana, a crypto expert, underlines how important the Exponential Moving Average 100 (EMA 100) is as a necessary support level for SOL. Acting as a technical indicator, the EMA 100 shows the average price over the past one hundred days.

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✴️ Support Weakens | Solana To Crash Below 100 | A trend following system uses a moving average as the main tool to generate trading signals for a system trader; the moving average is like the holy grail of technical analysis, together with the RSI. The moving… — Alan Santana (@lamatrades1111)

Historically, SOL has found favour at this level during positive times. Price breaks above the EMA 100 in September and October 2023 indicated good market attitude. But the reversal of the current trend clouds this previously dependable indication.

A Potential Price Plunge

Santana cautions that a decline below the present EMA 100, at about $140, might cause SOL to experience a major fall.

Investors may get afraid of this breach, which could cause a sell-off and drop the price even more. Should such a situation develop, the analyst issues a warning about a possible slide below $100.

Solana: Beyond The Technical

Remember the inherent volatility of the bitcoin market even while the technical study presents a worrying picture.

Technical indicator based short-term forecasts could not always be accurate. Price swings can also be much influenced by other elements such industry news, laws, and

For example, even if technical signs point to a decline, a good regulatory posture towards cryptocurrencies could raise investor confidence and cause a price rise.

On the other hand, bad news on a blockchain attack or security flaws could cause a sell-off, therefore contradicting optimistic technical signals.

The Road Ahead

Future course of Solana is yet unknown. Will the $140 price point shatter and send SOL spiralling down deeper, or will it provide a launchpad for a recovery?

Featured image from Pngtree, chart from TradingView