The Solana (SOL) price has experienced a significant downturn this week, as it has lost more than 12% of its value in a matter of days. During mid-July, a strong run-up was recorded in the market, resulting in the SOL crypto retesting its $200 mark.
However, the latest correction has pushed the price down to around $166.16, raising concerns among traders and investors about whether deeper losses are on the horizon. With bearish indicators flashing warnings, marketers are wondering if a retest of the $127 zone is now on the radar.
Break Below Key Support Confirms Weak Momentum
SOL’s price has now dropped below the crucial $180 support zone, which previously acted as a pivot for bullish momentum. The sharp rejection from the $200 resistance has initiated a bearish structure. Moreover, the current price action suggests that SOL may continue its bearish action in the coming time.
Considering the historic Solana price patterns, the next major support zone lies between $158 and $127, where buyers previously accumulated during consolidation phases.
The Moving Average Convergence Divergence (MACD) indicator has flashed a clear bearish crossover in the daily tie frame. Additionally, its trendline is moving well below the signal line, suggesting a growing downward pressure. With a rising red histogram in the SOL coin price chart, it hints at an intensifying bearish trend.
Additionally, the Stochastic RSI is currently bottomed out near 0, showing extreme oversold conditions. While this could indicate a short-term relief bounce, it also records the lack of buyer interest in the current zone, specifically with decreasing volume and bullish candles.
With SOL trading under the $180 and key indicators pointing bearish momentum, the probability of a drop toward the $127 support zone appears increasingly likely.
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Disclaimer: This content is for informational purposes only and does not constitute financial or trading advice. Technical analysis is speculative and past price patterns do not guarantee future results. Cryptocurrency investments carry significant risk including potential total loss of capital. Always conduct independent research and consult qualified financial advisors.
