- Solana’s price faces selling pressure and extensive weakness.
- Solana might fail to maintain around the $80 mark.
- Extreme bearish movements might catalyze a capitulation move.
Solana (SOL) encounters one of the most forceful selling momentum and negative sentiment within a year. Unknown developments about Russia invading Ukraine trigger substantial volatility across the entire financial markets.
Solana Hits New 5-Month Lows, Looking for Support
Solana price printed its lowest daily close within five months, exceeding lows recorded in 2021 August. Monday daily close and selling pressure terminated atop the 161.8% Fib retracement around $82.25. According to the Volume Profile perspective, this year’s Volume Profile stands at yearly lows, suggesting price recovery and a high potential for southward moves. Nevertheless, last year’s Volume Profile indicates that a peak volume node appears near the psychological zone of $75. Bears can trigger downswing actions around this value level.
Historically, markets risk related to geopolitical events triggers volatility, violent price movements, and bearish actions. For now, commodities, stocks, crypto, and futures ride bearish waves. However, the assets would see a sharp and immediate return to initial values and equilibrium whenever the status quo emerges and uncertainty fades.
SOL price seems ready to start another recovery rally. Meanwhile, bulls should target a daily close beyond the immediate resistance cluster around the $93 zone, the level where daily Tenkan-Sen and 50% FIB retracement reside.
For now, bears dominate the SafeMoon marketplace, translating to high selling pressure plus extensive weakness.
SOL TVL Declines Massively
DeFi Llama data reveals that Solana’s total-value locked touched peaks around $15 billion before losing momentum to plunge to the $7 billion mark. A move beneath this mark will likely catalyze price sell-off in Solana.
Other projects recorded somewhat better actions. Ethereum TVL fell to $114 billion from $160 billion, whereas LUNA TVL dropped to $15 billion from $21 billion. The overall crypto market decline triggered Solana’s massive TVL fall. Meanwhile, the global crypto market capitalization declined to $1.6 trillion from $3 trillion.
For now, Solana shows bearish signals as it lost its market share to competitors. Remember, momentum remains crucial in a competitive market.
