Solana (SOL) Dips Below $120, Are More Losses Ahead?

• Solana slips to $119 following a 3% loss.
• SOL has seen $31.26 million in liquidations.

Bearish pressure continues to rule the crypto space, with the Fear and Greed Index remaining at 24, reflecting fear within the market. Solana (SOL) is one of the assets suffering, slipping over 3.39% during the prevailing negative sentiment. 

The recovery of Solana might approach after a series of key support and resistance tests. SOL opened the day trading at around $124, and the wake of bulls pushed the asset to climb toward the $135.70 level. 

Later, the bears took charge of Solana and pulled back the price to $116.98. At press time, SOL trades within the $119.83 range, with a $61.41 billion market cap. 

Furthermore, the Solana market has witnessed a 24-hour liquidation of $31.26 million, as per Coinglass data . Consequently, the daily trading volume of SOL has reached $6.19 billion.

Can Solana Shake Off the Bearish Grip?

If Solana’s downside correction forms a death cross, the price could steadily fall back and test the support at $113.27. Dropping past this level could amplify further declines, sending the price to $107.

Assuming SOL jumps to the $125 level, the altcoin could likely target its crucial resistance at around $131.18. Breaking this resistance might trigger the altcoin for a strong upside correction.  

The asset’s Moving Average Convergence Divergence (MACD) line and the signal line are positioned below the zero line. This crossover infers a strong bearish momentum, hinting that the trend to persist.

Besides, the Chaikin Money Flow (CMF) indicator found at -0.08 signals a negative money flow in the market. In the meantime, the daily trading volume of Solana has increased by over 105%.  

SOL’s Bull Bear Power (BBP) value of -8.55 indicates that the bearish pressure is strong. Moreover, the daily relative strength index (RSI) at 39.67 suggests a weak momentum, leaning toward oversold territory.