SOL Price Plummets Below 140 Down 8 Will There Be More SellOffs

Coin Realm reports:
In the past 24 hours, the price of Solana has undergone a significant 7.76% pullback, breaking below the key long-term support level of $139.50. This trend suggests that Solana may be gearing up for further declines.
The recent drop is part of a 10.78% decrease since last Thursday, echoing the retracement of major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
Despite a 15.77% decline this month, Solana’s annual return rate stands at an impressive 595.28%, significantly outperforming other leading cryptocurrencies.
Moreover, Solana’s trading volume has surged 12.55% in the last 24 hours, reaching $3.02 billion, indicating increased trading activity and market interest.
Solana Breaks Long-Term Support – More Selling Ahead?
A closer look at the Solana price chart reveals that the increase in trading volume may signal further selling pressure.
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Most notably, Solana’s price breach below the crucial long-term support level of $139.50 indicates weakened strength and a shift in market sentiment to bearish.
Solana currently appears to be heading towards retesting the resistance level of $135.65 (red). If it successfully overcomes this resistance, it could drive a price reversal and reclaim the long-term support level.
Given that Solana is in the oversold territory, with the Relative Strength Index (RSI) (purple) at 30, this assertion is plausible. This can be interpreted as the asset being undervalued, suggesting a need for correction. However, the broader trend casts doubt on this prospect.
It is noteworthy that the 30DMA (yellow) is sharply declining and has recently fallen below the 200DMA (blue), which is on a neutral trajectory.
This indicates a strong short-term bearish momentum, and the long-term trend may shift from neutral to negative. Therefore, caution is warranted as further declines may lie ahead.
While this sets a negative precedent in the short term, sustained long-term growth may still depend on fundamental factors.
Notably, progress is being made in the launch of Solana spot exchange-traded funds. VanEck, one of the pioneering issuers of Bitcoin ETFs, has now applied to issue a Solana ETF.
This development could greatly boost Solana’s adoption and investor confidence, thereby influencing its long-term growth trajectory.