 ▲ Solana (SOL) / ChatGPT-generated image |
Solana (SOL) has plunged after losing the psychological support level of $80, drawing investors’ attention to whether it can defend the $70 line to prevent further declines.
On February 23 (local time), Solana failed to secure a foothold at $92 amid downward pressure from Bitcoin (BTC) and Ethereum (ETH), eventually breaking below the $80 support level. Senior market analyst Aayush Jindal noted that Solana entered a full-fledged downtrend after consecutively losing the $85 and $82 levels. He added that Solana is currently trading below its 100-hour simple moving average, suggesting that a short-term recovery may be difficult.
Technical indicators also point to increasing bearish momentum. The Moving Average Convergence Divergence (MACD) is accelerating in negative territory, while the Relative Strength Index (RSI) remains below the 50 mark, signaling mounting selling pressure. Solana continues to struggle below the 23.6% Fibonacci retracement level of the recent decline from the $86.68 high to the $77.30 low. Buyers are attempting to build a defensive line around $77 and $75 to prevent a deeper plunge.
For a rebound to materialize, Solana must first break through the short-term resistance near $80. Jindal identified $82 as a key resistance level that could determine the path of recovery. If Solana breaches the descending trendline formed around $82 and stabilizes above $83.10, an upward rally toward $87 and potentially $92 could follow. However, strong overhead resistance means that a significant influx of buying pressure is essential at this stage.
Warnings about downside risks are also growing. If Solana fails to break above the $82 resistance, the $77 support level is likely to be tested again. Jindal cautioned that a drop below $75 could send the price past $70 and potentially down to around $62 in the short term. Investors are closely monitoring changes in trading volume near key support levels and on-chain indicators rather than reacting emotionally to short-term volatility.
Amid the broader downturn in the digital asset market, whether Solana can hold its support levels may serve as a key indicator for the direction of the altcoin market. The breakdown below $80 represents not just a price correction but a psychological inflection point testing market confidence. Experts advise a cautious investment approach, noting that further declines will likely depend on Bitcoin’s recovery pace and shifts in overall market sentiment.
Disclaimer: This article is for investment reference only and the publisher is not responsible for any investment losses resulting from its use. The information provided should be interpreted for informational purposes only.