Solana (SOL) is facing significant resistance in its attempt to hold above the $200 mark. After briefly rising above this threshold, the price of SOL has dropped below $200, unable to reclaim its previous gains. This decline has fueled concerns that the cryptocurrency might test lower support levels in the coming hours.

Market observers are closely watching the $190 level, which is becoming increasingly critical. A drop below $190 could cause widespread fear, leading to further downward momentum and potentially breaching crucial support levels, especially near $188. The question now is whether SOL can maintain its current support or whether a more substantial drop is on the horizon.

Solana’s Struggle to Maintain Momentum

Looking at Solana’s daily chart, the technicals suggest that the token is in a bearish phase. The price has consistently formed lower highs and lower lows, indicating a market controlled by the bears. Although the bulls have made attempts to defend key support levels, including $195, their efforts have so far been insufficient to prevent further declines.

One important factor in this situation is the formation of a falling wedge pattern, which often signals a potential reversal or breakout. However, the current market dynamics do not support a strong bullish trend at the moment. After facing rejection from higher resistance levels, SOL’s price is expected to revisit lower support zones.

The Relative Strength Index (RSI) and the MACD (Moving Average Convergence Divergence) indicators support the bearish outlook. While the MACD has shown a reduction in selling pressure, the lack of strong buying interest means the price might struggle to sustain a rebound. A bearish crossover in the MACD further increases the likelihood of a continued downtrend.

Solana’s Key Support Levels

Despite the current downward pressure, Solana is expected to test key support zones around $190 and $188. These levels have historically acted as strong demand zones, prompting a rebound each time SOL has tested them. As the price approaches these levels, it could trigger increased buying activity, leading to a possible reversal.

However, if the price falls below $190, it may signal more extensive selling and the potential for further declines. A drop beneath $188 could lead to significant bearish momentum, potentially pushing the price closer to $180. On the other hand, if Solana can hold above these support levels, it could provide an opportunity for a strong rebound.

The Bullish Scenario: A Potential Reversal to $210

In the event of a recovery, Solana’s price would need to break above the immediate resistance at $200 to pave the way for a move towards $210. If SOL can reclaim this level and hold above it, the market may become more bullish, signaling the possibility of further gains. A rise above $210 would neutralize the bearish sentiment and open the door for a new uptrend that could bring Solana closer to its yearly highs around $225.

Solana’s future price trajectory remains uncertain, but it will largely depend on its ability to maintain support and avoid further declines. If it can establish a solid foundation above $190, Solana may experience a strong rebound, potentially leading to new highs in the months ahead.

Conclusion:

Solana’s price is at a critical juncture, with the market sentiment leaning towards bearishness due to its struggle to hold above $200. If SOL fails to hold key support levels, a dip below $190 could trigger a deeper correction. However, strong historical support at lower levels could provide an opportunity for a rebound. Traders will need to closely monitor SOL’s price action in the coming days to determine whether the cryptocurrency can sustain its momentum or if it will continue to struggle in the face of broader market challenges.