The recent Solana price rally has come to an abrupt end, with the cryptocurrency’s value plummeting due to accelerated sales on the crypto market. As of the latest trading session, Solana’s price has dropped to almost $195, representing a 5% decline on the day and a staggering 20% loss for the week. This downturn follows the loss of a crucial support level at $214, which has triggered a sharp retreat from the highs of the past week.
Market Pressure and Whale Activity
The withdrawal of Solana’s price is taking place amidst a broader crypto market decline, with major players like Bitcoin (BTC) and Ethereum (ETH) also experiencing losses. However, Solana’s drop has been more pronounced, leaving the token around 20% lower for the week. On-chain data reveals that large holders of Solana, also known as whales, have been transferring significant amounts of the token to exchanges, thereby accelerating the sales pressure.
As investors rush to realize profits after Solana’s latest rally, the market is witnessing a broader mood shift. The focus is now on whether buyers can step in and stem the decline or if further liquidation could deepen the losses, particularly among major holders. Technical indicators are being closely watched to gauge the potential trajectory of Solana’s price.
Technical Indicators and Support Levels
According to technical analysis, Solana is hovering just above a critical support zone of $185. The latest price action suggests that sellers may be running out of steam after the intense selling, and the relative strength index (RSI) is approaching the oversold area, indicating a potential bounce. However, moving average trends tell a mixed story, with short-term averages plummeting as bears dominate, while long-term averages remain intact.
A decline below $185 could open the door to deeper losses, potentially reaching $170 or even $156. On the other hand, a rebound above $202 could restore a positive sentiment, with resistance levels at $210 and $230 emerging as the next important targets if buyers regain control. The technical setup of SOL is currently signaling that a quick bounce back is possible if support is maintained through renewed interest and positive market catalysts.
The Solana price chart illustrates the recent downturn, with the token’s value plummeting in recent trading sessions. 
Solana price diagram | Source: crypto.news
Conclusion and Outlook
In conclusion, Solana’s price has retreated significantly, and the market is waiting to see if buyers can step in to reverse the decline. Technical indicators suggest that a bounce back is possible, but the trajectory of the token’s price will depend on various market factors, including the actions of major holders and the overall sentiment in the crypto market. For the latest updates and analysis on Solana and other cryptocurrencies, visit https://crypto.news/solana-price-retreats-near-195-amid-market-pressure-can-it-recover/
