While the selling pressure deepened in Solana, the weakening in technical indicators attracted the attention of the market. While the SOL price fell as low as $60, the asset traded nearly 80% below its all-time high. The formation of eight red candles in a row on the monthly chart also indicated that the downward trend continued.
RSI indicator attracted attention
One of the headlines that stood out in the market was that Solana’s monthly RSI data fell below the levels seen during the FTX crash in 2022. This outlook shows that downward momentum on long-term charts has historically been very strong. Analysts stated that this picture is not limited only to the price decline, but also reflects the weakening in the market structure.
Crypto analyst Ash Crypto stated that SOL fell into the most oversold zone ever, the price hit a 3-year low of $60, and the monthly RSI data fell to a weaker point than the 2022 FTX crash period.
According to the data, volatility also increased in derivative markets. It is considered that with the ongoing liquidations on spot and futures transactions, investors’ risk appetite has decreased, which feeds the downward pressure. The uninterrupted monthly decline series seen throughout the long correction was cited as one of the factors indicating that the dispersion trend in the market has become evident.
Cost zones create resistance
On-chain cost distribution data revealed that there was a heavy supply accumulation in the range of $76 to $83. The fact that the price remains below this band indicates that the region in question may act as a strong resistance area. For this reason, it is stated that sales may accelerate again in this range in case of possible reaction increases.
Mini dictionary: URPD is an on-chain distribution data that shows how many coins are moved in certain price ranges. It is frequently used to detect support and resistance areas because it makes the cost areas visible to investors.
Analyst Ali Charts shared that with Solana falling below $77, the main levels to watch are $53, $35 and $24.
It is reported that liquidity is relatively weak below current levels, so the $53 region stands out as the first important support. If the selling pressure continues, the $35 and $24 levels are also viewed as deeper support areas. Market participants are closely monitoring whether there will be a reaction in these regions.
Investors are watching lower supports
Some market observers state that gradual buying interest has emerged in the $70 to $50 range. However, in order to talk about a permanent recovery in the general outlook, strong resistance areas must first be overcome. In the short term, the direction is expected to be shaped according to the trading balance that will occur in liquidity pockets.
The latest movement in SOL is considered to be one of the rare periods when technical indicators and on-chain data paint a weak picture at the same time. For this reason, it is important for investors to monitor both the supply pressure in the 76 to 83 dollar band and the support areas listed below.
