Solana Could Slip Below $100 Again If it Loses This Support

Solana had another significant decline on Thursday as the crypto market shed yet another chunk. It retraced to one of its lowest values in the last six months.

SOL opened the day at $136 and surged above $144 but lost momentum afterward. It currently prints a red candle following its retracement to a low of $131. While recovery appears to be underway, the asset is down by almost 3%.

Away from price, sentiment across Solana is gradually weakening, with some market watchers calling for a dip to $100.  However, others believe that such a decline is less likely as the asset is seeing notable inflows from ETFs. 

Data from SoSovalue shows that since its inception on Oct 28, the exchange-traded fund tied to the altcoin saw massive buying. The accumulation increased over the last three days, with inflows of $30 million on Tuesday and $55 million the next day.

Nonetheless, the charts suggest the asset is holding a key level amid bearish sentiment across the market. 

Solana Maintains $128

Solana slipped below $130 for the first time since June on Monday. The correction followed a hike to $143 that ended as selling pressure increased. It rebounded the next day, surging close to the previous high.

However, the decline resumed on Wednesday after breaking Monday’s high. Events on Thursday closely mimicked those during the previous intraday session, but the altcoin attained a new high. 

Trading actions in the four days indicate that SOL is rangebound and is edging closer to a breakout. Its higher low is another reason for this conclusion. Solana’s breakout from its consolidation may be at resistance or flipping supports.

A focus on the higher lows may indicate growing buying pressure on spot, coinciding with ETF inflows. These factors may be the catalyst for an attempt at $150.

The relative strength index retraced below 30 a few days ago, but is at 33. The altcoin is due for a significant rebound, according to this metric. However, this does not mean the bottom is in.

Trading activity between Nov 4 and 11 shows that the asset exhibited price movements similar to those of the ongoing period. SOL surged, but lost momentum afterward. A repeat may occur in the coming days. 

SOL Must Hold $128

Price action since Monday has shown that SOL has held $128 support this week. However, the barrier remains critical for the asset. 

During the downtrend between March and April, there was no significant demand concentration at $130. As a result, after breaking the mark, the asset retraced to $124; however, a drop below $100 occurred days later. 

As previously highlighted, the altcoin could retest this level in the coming days. Flipping it could send the asset down to $100. 

The bearish trend across the market remains a determining factor in whether such a decline will happen. It is worth noting that, as of writing, the fear and greed index shows extreme fear. Additionally, the global cryptocurrency market cap retraced to $2.91 trillion a few hours ago. 

The relative strength index retraced below 30 as the cap tumbled. Buying volume may return in the coming days. How long it will last remains to be seen. 

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