Solana Price Analysis: Will the $130 Support Hold or Collapse?

Solana price is struggling to recover as it remains trapped in a steep bearish channel. The cryptocurrency recently fell below $160, marking its lowest level since November 2024. Market sentiment remains negative, limiting any upward movement. SOL is currently testing key support near $130, raising concerns about a potential breakdown. If selling pressure continues, Solana may face further declines in the coming sessions.

Solana Price Faces Key Test as $130 Support Threatens Breakdown

Crypto analyst Ali has identified a possible bearish setup in the Solana price chart. According to his analysis, SOL appears to form a right-angled ascending broadening pattern, a technical structure that could signal heightened volatility.

An ascending resistance line and a horizontal support level characterize this pattern. It suggests that price swings are becoming more unpredictable, with a widening gap between highs and lows. Such formations often indicate uncertainty, leading to potential breakouts in either direction.

Ali highlights $130 as a critical support level for SOL. If the price falls below this mark, it could trigger a sharp decline, possibly reaching $65. This would represent a significant drop from current levels, potentially impacting market sentiment.

Solana Price Drops as Network Activity Declines

Solana price remains under pressure as on-chain data reveals a sharp drop in network activity. The total transfer volume of SOL has plunged from $1.99 billion in November 2024 to just $14.57 million. This marks a significant decline in transactions, reflecting reduced usage and liquidity within the ecosystem.

On-chain metrics from Glassnode highlight a persistent downward trend in Solana’s transfer activity. The sharp fall in volume coincides with fluctuations in SOL’s market price, which currently trades at $103.07. The declining transaction value raises concerns over Solana’s network demand and overall market sentiment.

SOL Price Decline Continues Amid Bearish Momentum

 The SOL price continues to decline as selling pressure intensifies. The 4-hour chart shows a downward trajectory, with SOL trading at $138, marking a 1% drop. The recent price action suggests increased bearish momentum, with resistance at $160 and support at $130.

The Relative Strength Index (RSI) stands at 30, hovering near the oversold zone. The Moving Average Convergence Divergence (MACD) indicator displays a bearish crossover.  The MACD line remains below the signal line, signaling negative momentum. 

A descending channel pattern formed during the recent downturn, reflecting controlled selling activity. The price briefly stabilized but struggles to sustain an upward movement. If the Solana price prediction fails to reclaim the $160 resistance level, further declines toward $130 could occur.

To sum up, the Solana price remains under pressure as selling activity dominates market sentiment. If SOL fails to hold $130, further declines may occur, reinforcing the bearish outlook in the coming sessions.