Will Solana (SOL) Reverse Its Downside Trend?

• Solana marked a spike of over 5%, trading at $134.
• Pump.fun, a Solana-based meme coin deployer, surpassed $100 million in total revenue.

The crypto market has witnessed bullish turns, with the market cap recording a 2.90% spike. Nonetheless, volatility has persisted over the past week. Solana (SOL), the fifth-largest cryptocurrency, has faced significant challenges throughout August, with its price dropping to $110—its lowest level in the past five months.

SOL’s has briefly regained momentum in the last 24 hours with a 5.40% increase in price. Notably, in the early hours, SOL traded at a low of $127.27. Despite struggling at $130, the altcoin signaled a brief upside rally for the day and began climbing to the current price levels. At press time, Solana was trading at $134.67, according to CMC data.

Meanwhile, the whale transactions known for their substantial influence in the market created waves in the assets’ activity. The token might experience increased selling pressure, contributing to a recent decline in its market value. The loss of whale support could signal a period of price declines.

According to on-chain data, a whale has offloaded 695K SOL, approximately worth $99.5 million this year. Moreover, an average weekly sales of 19,306 SOL valued at $2.76 million. Despite the massive sell-off, they hold a total of 1.88 million SOL ($255.89M), currently staked. Notably, over the past 24 hours, Solana has recorded a $6.77 million liquidation, as per Coinglass.

On the other hand, a Solana-based meme coin deployer, Pump.fun, has surpassed $100 million in total revenue with nearly 2 million tokens launched on the platform, as per Dune Analytics.

Can SOL Reverse the Current Momentum?

SOL has shown declining momentum in the last seven days, with an over 15% plunge. At the beginning of the week, the altcoin was trading in the $158 range. The token’s price eventually fell sharply to a low of $127.57.

While zooming in at the technical chart of SOL, the daily relative strength index (RSI) is positioned at 47.81, entering into the neutral sentiment. Moreover, the asset’s daily frame suggests bullish momentum as the short-term 9-day and long-term 21-day moving averages are noted below the current price. Besides, the Chaikin Money Flow (CMF) indicator stays at 0.13, which indicates the increased money flow with selling pressure. Whereas, the trading volume has declined by 18%.

SOL price chart (Source: TradingView)

The daily price chart indicates Solana’s significant support level to be found at the $130.45 range. If the price breaks below this level, it could decline further, with the next target around $126. On the other hand, if the asset’s price attempts a reversal, on the resistance side, the major resistance zone might range from $140.28 to $146.

Disclaimer: The opinion expressed in this chart is solely the author’s. It does not represent any investment advice. TheNewsCrypto team encourages all to do their own research before investing.

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