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The Solana currency has been under strong selling pressure in recent weeks, amid a broader decline in digital currency markets, with the Solana currency losing nearly 40% of its value in just one month.
Concerns have intensified after the price recently touched $77 levels before rebounding to just above $80, reflecting the apparent fragility of the bullish momentum.
Analyst Ali Martinez noted that the “supertrend” indicator on the Solana coin’s monthly time frame gave a sell signal, a pattern that had previously occurred in January 2022 before a severe plunge of about 95%.
If the same situation repeats, this could theoretically mean that the SOL price will fall to very low levels compared to current prices.
He also warned that a break above the $76 support could open the door to further declines to $53, then $35, and possibly even $23.
Other analysts have taken a similar stance, as some traders believe that as long as the price remains below the $110 resistance, the price will move within a technical vacuum zone, leaving the risk of a deep pullback present, and there are rumors that the price could drop below $20 if the selling pressure persists.
Despite the pessimistic medium-term outlook, some technical indicators hint at the possibility of a short-term rebound.
The relative strength index (RSI) fell in the weekly frame to levels that reflect clearly oversold conditions, a level last seen in late 2022 when Solana traded near $8 before entering a strong upward wave.
This historical similarity has some wondering whether the market is approaching an inflection point.
Additionally, Solana’s traffic to centralized platforms has changed significantly.
After a period of rising deposits, often interpreted as an indicator of willingness to sell, outflows have returned to outpacing inflows in recent weeks, which could reduce immediate pressure on prices.
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