Solana price (SOL) toppled heavily on Monday while a broader crypto market was on the verge of a serious crash. However, SOL’s downward trajectory came in as extended bearish trading after the coin fell over 40% in the past seven days.
At press time, the Solana price was $137.84, down 0.8%. According to CoinMarketCap data, it has previously dropped as low as $110 apiece.
Solana fell in tandem with larger crypto market
As traders anticipate the introduction of Solana ETFs in the United States, interest in Solana has increased. Nonetheless, the current drop in cryptocurrency values is connected to a sell-off in the Nikkei 225 index, which lost 7.1% on the Japanese stock market.
When the central bank decided to hike interest rates on August 2, Japanese bank stocks had their worst day since 2008. This abrupt market collapse caused the greatest 72-hour loss in almost a year, wiping around $500 billion from the whole crypto market value over three days.
What’s next for Solana price?
The price drop for Solana over the previous seven days has caused some people to be worried about how long this positive trend will last. Additionally, increased whale activity suggests that the coin faces huge market selling pressure.
The $130 horizontal that the coin is currently trading at has been a significant area in Solana’s price history, continuously serving as both support and resistance since August 2021. This point has greatly impacted how the price of cryptocurrencies has developed.
In March of last year, Solana’s price surged past $130, reaching a high of $210 for the year. On two different instances, though, the price returned to this level: once in April and again in July. The fact that the price rebounded from the $130 mark on both occasions suggests it is still a strong support level.
Solana’s price did not increase even after the second bounce started an upward trend. The weekly candlestick, which is currently in the process of becoming bearish, is a worrying indication of the bullish outlook.
However, if the token can break this resistance level this time, it might see a rebound again to the original all-time high, probably surpassing it this time. But, a failure to break the $130 level will result in Solana price being range bound and pressured for trading.
