By Key Points
- Solana price heads toward key support at $120.
- Bitcoin’s movement might influence Solana’s next move.
- Bearish trend persists as SOL loses 21.7% since August.
- Traders should watch for a potential buying opportunity.
Solana (SOL) is making headlines again as it drifts toward the critical $120 support level. Analysts are closely monitoring this region, suggesting it might present a prime buying opportunity.
However, caution is advised as market dynamics remain unpredictable, and a deeper correction could be on the horizon.
Solana eyes $120: Will THIS be SOL’s price catalyst?https://t.co/RX0FUF01YX
— John Morgan (@johnmorganFL) September 3, 2024
Solana (SOL) is making headlines again as the Solana price drifts toward the critical $120 support level. Analysts are closely monitoring this region, suggesting it might present a prime buying opportunity.
However, caution is advised as market dynamics remain unpredictable, and a deeper correction in the Solana price could be on the horizon.
Solana Price Action: A Bearish Trend
Over the past few weeks, Solana’s price has been caught in a downward spiral, dropping 21.7% since August 25. As of Monday, the token saw a minor recovery, gaining 2.58%, but the overall sentiment remains bearish.
The daily Relative Strength Index (RSI) sits at 38, underscoring the dominance of downward momentum. Meanwhile, the On-Balance-Volume (OBV) has been steadily declining, signaling persistent selling pressure affecting the Solana price.
The $120 level is critical for Solana, representing the lower boundary of a price range that has been in play between $122 and $187. As the Solana price approaches this region, traders are eyeing it as a potential entry point.
However, the lack of bullish strength, as indicated by the weak OBV, raises concerns about the sustainability of any upward move in the Solana price.
Bitcoin’s Role in Solana’s Fate
One of the key factors that could influence Solana’s price in the coming weeks is Bitcoin’s (BTC) movement.
A liquidity run in Bitcoin could trigger a broader market rally, lifting Solana’s price along with it. However, this is speculative, and traders should remain vigilant.
The current market setup suggests that the Solana price might continue to consolidate within a tight range over the next 4-6 weeks.
This consolidation could offer short-term trading opportunities, but the potential for a deeper correction in the Solana price cannot be ignored.
Investors should closely monitor price action around the $120 mark, keeping an eye on Bitcoin’s performance as a possible catalyst.
Final Thoughts
Solana’s approach to $120 could be a pivotal moment for traders. While this level might offer a buying opportunity, the ongoing bearish trend and weak market signals suggest caution.
A decisive move above or below this support could set the tone for the next major direction in the Solana price.
