The crypto market has been experiencing a rough bearish ride lately with Solana the Ethereum killer at the center of attention. Currently trading at $124.30 SOL has seen a drop of 7.57% in the last 24 hours and over 15% in the last 7 days and 26% in the last 30 days. Despite these setbacks Solana maintains its position as the 5th largest crypto asset by market cap valued at $57.4 billion
Recent data from blockchain analytics platform Artemis reveals a silver lining amid the price decline. Solana has achieved a milestone of 30 million monthly active users as reported by SolanaFloor on social media platform X. This surge in user adoption marks a significant recovery from the ne
Adding to the positive developments Solana has implemented a major upgrade known as ZK Compression. This technological advancement is expected to improve the network scalability and reduce transaction costs. Mert Mumtaz, CEO of Helius said a Solana infrastructure application projects "10,000x scale improvements" and over 5,200 times cheaper transactions as a result of this upgrade.
However these achievements have yet to translate into bullish price action. The broader crypto market downturn has taken its time with $155 million worth of long positions liquidated in the past 24 hours affecting 70,548 traders across various cryptos.
Solana's price chart shows that it is approaching a key support level that coincides with the neckline of a double-top pattern. This area has previously acted as a support for rebounds making it a decisive zone for SOL near-term direction.
Since reaching a high of $188 on May 21st from a bullish pennant resistance SOL has experienced a 33% decline. The breakdown from a wide bullish pennant on June 18th has further accelerated the bearish momentum to the $125 support zone.
Key technical indicators show a bearish picture also as the daily RSI is currently at 29 indicating oversold conditions. This extreme reading often shows a potential bounce to recovery in the short term before we get a clear direction. The weekly RSI is at 47 showing increased bearish momentum but not yet in oversold territory.
The MACD line also shifted below the signal line reflecting bearish market sentiment.
Current price action is testing the neckline support of the double-top pattern. A break below this level could see SOL drop towards the $100 mark. On the other side a bounce from this support and a higher timeframe bullish reversal confirmation signal might target the $200 level.
Looking at the 24-hour trading volume it stands at $1.9 billion ranking 6th among all crypto and showing over 161% increase showing the bulls momentum at the current key support that might fule a recovery signal.