Solana (SOL) tumbled below $200, marking an 11% daily dip and its lowest level in recent times. Meanwhile, Bitcoin also slipped below $100,000 after the Federal Treasury chairman’s assertion that the central bank lacks the authority to hold Bitcoin reserves.
Analysts highlighted a bearish super trend and a head-and-shoulders pattern as key signals driving SOL’s decline. At the time of publication, the cryptocurrency is trading at around $189.76.
SOL’s price is testing the critical 50 EMA as resistance, with weak volume and limited buying pressure signaling that the downtrend may persist.
Solana (SOL) Follows Bitcoin’s Downward Trend
The SOL support level failed to hold, signaling further downward pressure on the cryptocurrency. A bearish flip in the super trend indicator accompanied by a prominent “SELL” signal reinforced the case for a decline.
Adding to this bearish outlook, a head-and-shoulders pattern emerged, providing another technical cue for lower prices.
Earlier predictions about SOL’s decline drew skepticism. At the time, many dismissed the analysis suggesting a retest of the $200 zone. Now, with Solana firmly within this range, traders are advised to watch closely to see if this critical support can withstand the pressure of if further losses on the horizon.
The cryptocurrency follows Bitcoin’s downward trend, which began after Jerome H. Powell, chairman of the U.S. Federal Reserve, clarified that the central bank has no authority to hold Bitcoin. After his remark, Bitcoin slipped below $100,000, breaking its rally to hit $110,000.
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