Solana, Rally Stalls, Whales Fleeing...Bloody Battle to Defend $85

▲ Solana (SOL)/ChatGPT Generated Image

Solana (SOL) failed to settle at $90, turned downwards, and is now fighting a precarious battle to defend the psychological support line of $85.

According to crypto media outlet NewsBTC on April 22 (local time), Solana has been under downward pressure after its recent attempt to break $90 failed, continuing a tough fight near the key support level of $85.50. Analysts diagnose that Solana has entered a bearish phase, failing to ride the rebound trends of Bitcoin or Ethereum and successively giving up the $88 and $87 support levels. Currently, Solana is trading around $86, coinciding with the 100-hour simple moving average.

Technical indicators also clearly show bearish signals for Solana. The hourly Moving Average Convergence Divergence (MACD) is accelerating in the bearish zone, and the Relative Strength Index (RSI) also remains below 50, indicating that buying momentum has been exhausted. In particular, the fact that the price is staying below the Fibonacci 23.6% retracement line for the decline from the $89.34 high to the $85.55 low further dampens investor sentiment.

For a bullish reversal, breaking the first resistance level near $87.80 is urgent. This zone coincides with the Fibonacci 61.8% retracement line and is expected to be a watershed for determining the return of buying power. If it succeeds in overcoming the $88.80 resistance wall, it could attempt to reclaim $90 again and potentially surge towards the $92 high. However, if it fails to break through the resistance zone, the $85.50 and $84 support levels could be threatened in turn.

Downward risk remains open. Market concerns suggest that if Solana fails to hold the $84 support, it could plummet to $82 and then to $80. The currently formed upward trendline is being tested for support around $85.50, suggesting that price movements in the next few hours will be a key variable in determining the short-term direction.

Ultimately, Solana's fate depends on how firmly it defends the $85.50 support level. If buyers succeed in defending this zone, a new recovery rally can be expected, but if they fail to overcome selling pressure, further declines and investment losses will be inevitable. Global virtual asset investors are closely watching whether Solana can overcome its technical crisis and restart its engine towards triple-digit prices.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*