Next Key Solana (SOL) Support Revealed
2024-12-19
Category: None

Because it is still stuck in a descending channel, Solana is still showing bearish momentum, which suggests that the asset is under more pressure. SOL is now trading at about $210 after gradually declining, failing to maintain its prior highs of about $280. Weak short-term bullish sentiment is reflected in the asset's inability to break out of the channel.
The 50 EMA is currently a crucial resistance level, and the recent price action shows SOL flirting with it. Even though there have been fleeting attempts to recover, the lack of volume and persistent buying pressure indicate that the downtrend is still ongoing. The door may open for additional declines if SOL is unable to rise above this level in the near future. The 100 EMA closely matches the lower edge of the descending channel at $196, marking the next significant support. SOLUSDT Chart by TradingView">
SOL needs to hold onto this zone because a break below it might cause the price to plummet toward the 200 EMA, which was a solid support level during the asset's prior consolidation stages around $175. On the other hand, Solana may return to the upper range of the channel if it is able to break out of the descending channel and recover from the $196 support - aiming for the $225 level. 
SOL would have to regain the $250 level and show consistent momentum outside of the channel, though, in order for a complete reversal to occur. Although the RSI is in the lower range and shows bearish momentum, it is not yet oversold, indicating that more downside may be possible before a major recovery attempt. 
Because volume spikes may indicate a breakdown or a reversal, traders should monitor the $196 support level for the time being. Until distinct bullish indications appear, Solana's performance is probably going to continue to be under pressure.