Solana Crash Warning as Support Collapses, Eyes on $200
Solana (SOL), the world’s fifth-largest cryptocurrency by market capitalization, is poised for downward momentum as its daily chart flashes warning signs. On December 3, 2024, sentiment across the cryptocurrency space seemed bearish, with assets struggling to gain momentum.
Solana (SOL) Technical Analysis and Upcoming Levels
During the price correction phase, Solana (SOL) failed to hold its key support level and fell below the $227 mark. According to expert technical analysis, SOL has entered a consolidation phase after hitting all-time highs, forming a bearish head and shoulders price action pattern.
In today’s bearish or price correction stance, SOL broke out of the bearish pattern’s neckline and attempted to close below it. Based on recent price action and historical momentum, if SOL closes below the $226 level, a 10% drop to the $200 mark is very likely in the coming days.
On the positive side, SOL is trading above the 200 exponential moving average (EMA) on the daily time frame, indicating an uptrend. Meanwhile, the relative strength index (RSI) suggests that an upward rebound is likely in the coming days as its value approaches oversold territory.
US$159 million SOL outflow
On-chain analytics firm Coinglass said that despite the pessimistic outlook, whales and institutions have shown strong confidence and interest in altcoins. Spot inflow/outflow data for SOL shows that over the past four days, the exchange has witnessed significant outflows of $159 million worth of SOL.
In the context of cryptocurrencies, outflows are when whales withdraw coins from exchanges to their wallets, which is considered a bullish sign and indicates that an upward rebound is likely in the coming days.
Given the outflows, it seems likely that SOL investors will take advantage of the current market sentiment and price declines by acquiring more assets.
Current Price Momentum
At press time, SOL was trading near $222, with the price down 6.55% in the past 24 hours. During the same period, its trading volume surged 101%, indicating increased participation from traders and investors compared to the previous day.
