**Solana Faces Challenges Below $140: Can the Bulls Maintain $130 Support?**
As the total cryptocurrency market cap dips to $2.87 trillion, altcoins are finding it tough to secure essential support levels. In this challenging market environment, Solana is trading below $140, currently sitting at $139 after experiencing an intraday decline of 3.05%. The pressing question remains: will the bearish trend push Solana down to the $125 support level, or can it stabilize?
**Investor Sentiment Turns to Fear**
With the ongoing decline, many Solana investors are feeling anxious. A recent tweet from crypto analyst Ali Martinez highlights that the net unrealized profit and loss (NUPL) indicator from Santiment shows Solana is currently in the “Fear” zone and nearing “Capitulation.” Additionally, Solana’s transfer volume has dramatically decreased from $1.99 billion in November 2024 to a mere $14.57 million today, indicating a significant drop over the past three months and raising concerns about a potential continuation of the bearish trend.
**Solana Price Analysis: A Bearish Perspective**
Analyzing the daily chart, it’s evident that the SOL price has suffered a substantial crash after failing to break through the $260 supply zone. This pullback has resulted in a nearly 47% decrease from its peak of $280. The bearish crossover between the 50-day and 100-day EMA lines suggests a looming death cross with the 50-day and 200-day EMAs. Furthermore, the daily RSI has fallen into oversold territory, signaling heightened selling pressure.
**Derivatives Market: A Glimmer of Optimism Amidst Decline**
Despite the downturn in Solana’s prices, the struggle around the $140 mark has sparked a slight sense of optimism in the derivatives market. The long-to-short ratio in Solana derivatives has balanced out, indicating an equal presence of bullish and bearish traders. Moreover, the volume-weighted funding rate for Solana has turned positive, reaching 0.0033%, which suggests that traders are willing to pay a premium for long positions. In the last 24 hours, liquidations have nearly balanced, with long positions totaling $13.59 million and short liquidations at $12.95 million. Overall, the Solana derivatives market has seen a minor decline in open interest by 1.54%, bringing it down to $4.35 billion.
**Key Support Level at $130**
Analyst Ali Martinez points out a right-angled ascending broadening formation on Solana’s 3-day chart, with the price nearing a critical support level around $130. If the bulls are unable to defend this level, the downtrend could potentially extend toward $65, according to Martinez.
As the market continues to evolve, all eyes will be on Solana to see if it can maintain this crucial support and reverse the current bearish sentiment.
