Is a Further Drop to $120 Coming? | Airdrop Alert Pro

Solana’s price has dropped sharply since reaching an all-time high of $295.83 on January 18. At press time, sol Since then, the transaction price is $171.81, down 41%.

Altcoin, which has been trading since 2023, has now fallen below the channel’s downside. This marks a decisive shift in market trends and prompts further declines.

Bears can control when Solana breaks the channel for many years

Solana has traded Since June 2023, in the rising parallel channels, it is now broken below it for the first time in the past year.

This channel forms when the price of an asset moves between two upwardly sloping parallel trend lines. It indicates a sustained bullish trend, high and higher lows. The upper line acts as a resistor, while the lower line acts as support.

Same as solwhen the price is below the lower limit, it marks a breakthrough in the uptrend and shows that sales pressure overwhelms buyers’ strength. This collapse suggests a bearish advantage in the SOL market, indicating a further decline as traders exit long-term positions.

In addition, the coin has recorded negative elderly ray index since January 27, confirming a bearish bias against SOL. At press time, this was -30.4.

This indicator measures the strength of bulls and bears in the market. When the index is negative, bear power will dominate, indicating strong sales pressure and potential Further price drop.

SOL EYEE $136 under weak buying pressure

According to its Fibonacci Rewind Tool Prices in Saul If the buying pressure is further alleviated, the risk drops to $136.62. If the Bulls fail to defend this level of support, the price of the coin could drop to $120.72, while the lows hit in September.

However, a resurgence of demand for SOL will invalidate this bearish outlook. In this case, its price may try to retest its breakout line. A successful retest could push its price above the lower limit of the rising parallel channel and raise it to $220.58.