Crypto: Solana On The Brink Of The Abyss, Heading Towards Another Decline?

Solana seems to be holding steady with a price of $132.19 per piece, marking a modest increase of 1.3% over the last 24 hours. However, we are far from the all-time highs of over $200 observed in November 2021. The SOL crypto shows signs of weakness, but what is really happening behind the scenes? Do technical indicators paint an even darker future for Solana?

Solana’s SOL Price Wavers Under Pressure

Solana’s price, which recorded 9 days of fall at the beginning of September, is currently under notable pressure after being rejected by a broken ascending trendline, near $139.80. Since then, SOL has recorded a 5.3% drop in just two days, now trading at around $132.

If the resistance around the 50-day moving average at $141.43 continues to play spoilsport, Solana could see its price drop another 9% to reach key support around $120.91.

Technical indicators add fuel to the pessimists’ fire. The RSI (Relative Strength Index) and the Awesome Oscillator are both below their neutral levels, suggesting a strengthening of selling pressure.

Coinglass also reinforces this bearish trend with a long/short ratio of 0.88, showing that more traders are betting on SOL’s decline.

• Potential support at $120.91;
• Rejection near $139.80;
• Long/short ratio at 0.88.

Crypto: Decline in Development Activity, Rising Concerns

Activity on the Solana network is also not reassuring. According to data from Santiment, the SOL development activity index is in free fall, dropping from 176.95 to 166 in the span of two days. This constant decline since early September suggests a certain loss of confidence in Solana’s blockchain ecosystem.

Less development means fewer concrete projects, and this directly weighs on investor confidence, already shaken by unencouraging technical prospects.

However, there remains a glimmer of hope: if Solana manages to close above $141.43, the bearish scenario could be invalidated.

Such a performance could push SOL’s price to a new high, potentially reaching $149.30. But for now, caution remains the watchword for fans of this crypto star.

Last week, Solana tested its support for the sixth time, signaling a phase of consolidation, as reported by this Cointribune technical analysis.