On February 27th, Thursday, the crypto market witnessed a cool-off from its prevailing correction momentum as Bitcoin holds above $82,000. While the market is yet to indicate bottom formation, top assets like Solana are nearing key support zones to bolster further price movement.
Key Highlights:
- Solana Fear & Greed Index stands at 27, indicating a bearish sentiment among investors.
- Since March 2024, the $120 has stood as a strong demand zone for buyers to recuperate the bullish momentum.
- A potential death crossover between 50-and-200-day EMA accelerates the market selling pressure for potential breakdown.
SOL Revisits Key Support That Triggered a Major Decline in 2022
Since last week, the Solana price has experienced a sharp correction from $180.5 to the current trading price of $137, registering a 27% loss.
The price is wavering around its aggregated cost basis of $139—a significant make-or-break point for investors to dictate SOL’s market direction.
A history lesson sheds light on how SOL behaved at this level in the past. Back in 2022, SOL traded around $139 for five months before ultimately breaking below and staying under this resistance until October 2023.
A failure to hold above $139 could indicate a potential deeper market correction, shaking investor confidence. Conversely, a strong bounce from this level could reaffirm bullish sentiment and set the stage for further upside momentum.
Also Read: Bitcoin Crashes Into Extreme Fear at 10 – Has the Market Bottomed?
SOL V-Top Reversal Signals Further Decline to $120
Solana’s daily time frame chart shows a V-top reversal from $295 to $137 — a 54% decrease in the last five months. This downfall, backed by increasing trading volume and a breakdown of key daily EMAs (20, 50, 100, and 200), hints at a strong stance from sellers for prolonged correction.
With no major sign of reversal yet, the SOL price could plunge another 10% to hit the $120 support. The horizontal level has stood firm since March 2024 and displays a history of bolstering reversal trends ranging from 60-120%.
Solana’s behavior at $120 support could add an additional layer of confirmation for a prolonged breakdown below $139 or a reversal opportunity.
