Solana Finds Crucial Support Level After Heavy Bear Run. Can It Pave the Way for a Bullish Reversal Comeback?

The cryptocurrency market has been bearish in overall, and Solana has been no exception. Over the past 30 days, the high-flying blockchain has seen a massive 34% drop in value, over 16% drop in the last 7 days and a 5.36% drop in the last 24 hours as of writing, leaving investors questioning if the worst is over and whether the bulls can regain control.

Amidst the market bearish run, SolChatCoin has introduced support for Solana Memecoin (MEW), enabling users to send and receive the meme-inspired crypto within the decentralized application (DApp). This development could help breathe new life into the Solana ecosystem and attract a wave of new users.

SOL Technical Analysis

On the weekly chart, Solana's price has been on a downward trajectory for the past four weeks since early April. After rejection at the $209 resistance level, weekly candles have all consistently closed bearish, reflecting the strong bear momentum that has gripped the market. The selling pressure has been relentless, with SOL losing over 34% of its value in the last 30 days alone.

SOLUSD Weekly Chart: Tradingview

Solana found a glimmer of hope when its price found double support from a horizontal support level and an ascending trendline at the $125 zone on April 13th after breaking through a ranging channel's support level. This double support briefly halted the downward spiral, allowing the price to bounce back. However, this week's price action has seen SOL break down from an ascending trendline, plunging further to test the remaining horizontal support zone at $125.

On the daily timeframe, Solana's price has been trading bearish, breaking down past an ascending trendline and inching closer to the immediate horizontal support at the $125 zone. Today, SOL opened at $137.73 and has recorded a high of $139.74 and a low of $126.57 so far.

The horizontal support at $125 and the Relative Strength Index (RSI) reading of 34 act as key support indicators, potentially preventing further price drops into an extremely oversold region. However, if this support is breached, the next level of support lies at the $110 low.

SOLUSD Daily Chart: TradingView

The daily RSI of 34 suggests significant selling pressure, but it also indicates enough room for bullish activity before reaching overbought levels if the bulls regain control. On the 4-hour timeframe, Solana's price is poised to test the support level, with its oversold RSI reading of 30 potentially acting as a strong support against further downward pressure.

As the SOL market navigates this rough market pressure, the question that remains is: Can the bulls gain the strength to stage a comeback, or will the bears continue their bearish run on Solana's price?