The cryptocurrency market is experiencing a wave of caution as Solana’s price is being tested at a crucial support level, sparking concerns about potential further decline. Solana, currently trading near $157, has extended its weekly losses to 22% after a sharp decline from $188, reflecting the overall market weakness.
Market Analysis
The decline in Solana’s price is not an isolated incident, as the total value of cryptocurrencies has plummeted by $300 billion, with Bitcoin briefly falling below $100,000 and dragging down major altcoins. This has resulted in a cautious sentiment among investors, with few signs of recovery in sight. The sharpest part of the decline occurred at the beginning of this trading week, with SOL moving lower from $188, breaking its weekly support at $175, and falling as low as $147 before finding buyers near the $150 level.
Solana Price Outlook
Solana’s future direction depends on whether the $150 support zone can withstand further selling pressure. If negative market sentiment continues, prices could fall further, potentially weakening investor confidence. The medium-term outlook for Solana price is well below its 200-day moving average and once-reliable weekly support at $175, making it challenging for buyers to regain control. Any move higher will likely face strong resistance, particularly if the broader crypto market remains deep in the red.
The Solana price chart from TradingView illustrates its downward trend, with the token respecting the parallel descending channel that has defined its movements since September. 
Solana price chart | Source: TradingView
Technical Analysis
Technical analysis suggests that Solana’s price is at a critical juncture, with the $175 level acting as formidable near-term resistance. If SOL cannot overcome this resistance, the price could rise back to $150 or even decline, especially if market conditions worsen. On the other hand, a more positive scenario would see Solana consolidating after testing $175, generating renewed interest from investors before a healthier uptrend occurs. Much will depend on whether overall market volatility eases and confidence returns.
In conclusion, the Solana price is being tested at a key support level, and caution is warranted as market participants look for stability before seeking new opportunities. For the latest updates and analysis on Solana and the cryptocurrency market, visit https://crypto.news/solana-price-tests-150-support-amid-market-panic-is-more-downside-ahead/
