Solana Faces Market Volatility, Drops to $120 Amid Uncertainty

• Solana dropped over 1.9% in the past 24 hours and recorded a new low of $120 amid market volatility.
• After hitting an all-time high of $294.33 in January, Solana has faced challenges like network congestion and market corrections, with its price declining by 19% in the last ten days.

Solana’s (SOL) pricing movement barely seems to break a tight range toward breaching an essential resistance zone lying at $135. Over the past twenty-four hours, SOL reflected market uncertainties with low trading volumes in a wide price margin between $120 and $124. 

Solana’s capital value exceeds $61 billion, while its daily trading volume surpasses $3.9 billion, showing its position as a reputable crypto asset.

Solana Faces Continued Struggles After January’s Peak

Solana achieved its highest price yet at $294 during January before network congestion and market deterioration reduced its value. The platform has experienced significant challenges which include network issues and market adjustment problems since reaching its highest value at $294.

During the most recent weeks Solana has experienced another price drop which completely cancelled out the gains it achieved in the middle of March. At its current $120 worth Solana has lost around 19% of value over the past ten days.

Investors have been patiently waiting for the price to cease its struggles, and that increased impatience has made them more willing to sell their holdings and leave the market.

Market analysts pointed out that Solana’s unwillingness to cross-resistance levels is also caused by other outside factors that dampened investor appetite and curbed any upward price movement, like FTX repayment matters and macroeconomic uncertainty.

According to crypto analyst Ali Martinez, the key resistance levels for Solana include $135.70, $144.40, and $165.20. He emphasized that clearing each could signal a strong continuation of the uptrend, but the altcoin has been unable to do so.

Bearish Indicators Signal Continued Pressure

Technical analysis shows that SOL is under bearish pressure. The RSI on the daily chart is at 41.03, indicating limited potential for further price drops in SOL.

Source: Tradingview

The primary support level for SOL is projected at $97.69 which bears the risk of price declines to $110 if bearish forces gain dominance. Breaking through the current resistance at $165 would potentially send SOL toward $200 and possibly further toward $220.

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