Solana (SOL) is reeling from major damage after losing important support levels. After once approaching a market capitalization of $100B, SOL lost much ground over 60% since January, recently testing below $100—a 14-month low—during heightened market sell-offs and liquidations triggered by major players. Technical indicators, including the Relative Strength Index (RSI), indicate the token is in oversold territory, pointing to a possible short-term rebound.
The bearish momentum continues, with the Market Value to Realized Value (MVRV) ratio dropping below zero, showing that a large number of investors are sitting on losses. Moreover, upcoming token unlocks, such as these 465,000 SOL (greater than $50 million), will be joining the party and adding more downward pressure.
According to analysts, if SOL is not able to retake the $130-$135 resistance zone, it will likely retrace support down to the $90 region or even $65. Investors would be wise to focus on important support and resistance levels and overall market condition to get a read on Solana’s potential to lead any recovery.
