Solana (SOL) Faces a Potential 10% Drop
2025-02-05
Category: None

Solana (SOL) has been a dominant altcoin, recently hitting an all-time high (ATH) of $295 before facing intense bearish pressure. With SOL now struggling to hold key support levels, a 10% correction could be on the horizon, potentially dragging the price below the psychological $200 mark.

Following its latest decline, SOL has reached its ascending trendline, which has served as a strong support since September 2024. While bulls have defended this level so far, technical indicators suggest that a deeper correction is looming.

🔹 Bearish Signals:
📉 RSI Downtrend – Lower highs and lows indicate increasing bearish dominance.
📉 50-Day MA Lost – SOL has slipped below this key level, signaling weakness.
📉 200-Day MA in Play – If bulls fail to hold $196, SOL could drop to $182.53, where the 200-day MA serves as the next major support.

If SOL breaks below $196, expect a 10% plunge toward the $182 support level. However, if bulls manage to hold, a reversal could be in sight.

Will Solana bounce back, or is a deeper correction inevitable? The coming days will be critical for its short-term price action.