As we reported as Kriptokoin.com, while the cryptocurrency market has been experiencing great fluctuations recently, Solana (SOL) also got its share of these fluctuations. Solana, which has lost more than 15 percent in the last 48 hours, fell as low as $ 121 on July 1. Despite this situation, experts say it is not yet the right time to buy Solana, even though it signals a short-term recovery.Alan Santana, a well-known analyst at TradingView, warns Solana investors to be cautious based on market indicators and technical analysis
Solana’s Last Fall and the Market Outlook
In the last 48 hours, Solana (SOL) has dropped more than 15 percent in price, falling as low as $121 on July 1. Weekly losses are about 3 percent, while the decline in the 30-day time frame is about 19 percent. Despite this decline, there has been a short-term recovery in the last 24 hours, but according to Alan Santana, trading expert at TradingView, the right time to buy Solana has not yet come in light of market indicators and technical analysis.
Since March 2024, the Solana market has been consolidating with a pronounced bearish bias, suggesting that the market is in an unstable state. Santana notes that this consolidation has not resulted in buyers or sellers forming a dominant trend, but a bearish one.
Solana Downtrend and Technical Indicators
Solana has experienced its strongest bearish move since April 2024, signaling a significant increase in selling pressure. In particular, a break of the descending triangle support level is seen as a critical bearish signal:
This pattern is often considered a bearish continuation pattern and the failure to hold the previous support signals further downside potential. Increased selling pressure usually indicates a continuation of the downtrend.Analysts recommend taking a broader perspective by considering the weekly timeframe, as a strong bearish move can take weeks or months to settle.
Fibonacci Retracement Levels: Critical Watch Points
Fibonacci retracement levels provide insight into potential support and resistance levels based on historical price action. Here are the critical levels to watch according to the chart:0.618 Fibonacci Level:$88.36 – This level is an important Fibonacci retracement level that is often considered as a strong support. A fall to this level indicates a significant correction from current prices. 0.786 Fibonacci Level: $55.26 – This deeper correction level could be another critical support level.If the price reaches this level, it could offer a more favorable buying opportunity.
Currently, Solana is trading at $139 and experiencing a strong uptrend in the cryptocurrency market.According to DeFiLlama, the total value locked (TVL) on Solana has reached an impressive $4 billion, signaling strong growth and increasing investor confidence.However, increasing bearish dynamics could force Solana to retreat and look for support at the $130 level. Further declines could see a pullback to the $120 support zone and potentially as low as $88.36 and $55.26, implying a market shift to a bearish trend.
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