SOL Struggles to Overcome Bearish Structure: Can Bulls Find Support?

• SOL was in a highly bearish structure at press time. Its FUD remained strong, undermining the asset’s performance and causing a 70%+ loss in the past 8 weeks.
• The Relative Strength Index (RSI) on the daily chart was deep in oversold territory, indicating that the buying pressure had diminished greatly and that selling pressure was intensifying.
• If selling pressure continued, a break below $9.43 was possible and bulls may find new support at $8.12 or $5.99. A breakout above $10.74 would invalidate the bearish bias.

Solana [SOL] was facing a bearish structure at press time, with its FUD remaining strong and causing a 70%+ loss in the past 8 weeks. This downward trend was observed in the Relative Strength Index (RSI) on the daily chart, which was deep in oversold territory and indicated that the buying pressure had diminished greatly while the selling pressure was intensifying. If this pressure continued, a break below $9.43 was possible and bulls may find new support at $8.12 or $5.99. However, a breakout above $10.74 would invalidate the bearish bias.

The FUD surrounding SOL was strong at press time, undermining the asset’s performance and causing a significant drop in its price. According to Santiment, this decline could be related to flattening development activity. This was further confirmed when the on-balance volume (OBV) fell sharply, removing the trading volume needed to reinforce buying pressure. Therefore, selling pressure intensified and pushed SOL down.

At the same time, the RSI on the daily chart was deep in oversold territory, indicating that the buying pressure had diminished greatly and that selling pressure was intensifying. This further confirms that SOL was indeed in a bearish structure and could fall below $9.43. Bulls may find new support at $8.12, however, if this level failed to hold, another at $5.99 may suffice. Thus, the levels can serve as short-selling targets, with a stop loss above the 23.6% Fib level of $10.74. A breakout above this level would invalidate the bearish bias.

Overall, Solana [SOL] still needs to overcome the FTX debacle and its FUD remained strong at press time, undermining the once-thriving asset’s performance. The RSI on the daily chart was deep in oversold territory, indicating that the buying pressure had diminished greatly and that selling pressure was intensifying. If selling pressure continued, a break below $9.43 was possible and bulls may find new support at $8.12 or $5.99. However, a breakout above $10.74 would invalidate the bearish bias. Therefore, the future of SOL remains uncertain, and investors should be cautious when entering the market.