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Solana (SOL) has been under significant pressure, with its price recently dipping below crucial support levels. As we enter September 2024, investors are keenly observing whether the SOL price can break out of its bearish trend or if further declines are on the horizon. This article explores the recent trends for Solana price, key support and resistance levels, and what investors can expect in the coming weeks.
Solana Price Analysis: SOL Price Extends Losses
Solana's price has seen a notable decline, falling below the $150 and $142 support levels. This downward movement accelerated, with SOL testing the $128 support, forming a low near $127.80. Currently, the SOL price is struggling to recover, trading below $140 and the 100-hourly simple moving average.
The SOL price is encountering resistance near $132.50, with a connecting bearish trend line at $134 on the hourly chart. The key resistance level is at $138, aligning with the 50% Fib retracement level of the recent drop from $147.28 to $127.80. A successful breach of this zone could pave the way for a recovery of $150. However, failure to surpass $138 may lead to further declines, with support at $128 and potentially lower to $122.
What Lies Ahead for Solana Price in September 2024?
September could be a challenging month for Solana, as the market sentiment remains cautious. The broader crypto market, including Bitcoin and Ethereum, has shown similar patterns, but Solana price is under additional pressure due to institutional investors withdrawing their holdings. In August alone, SOL price saw outflows of $34.3 million, marking it as one of the least favored assets during that period.
Experts suggest that this trend could persist, with Solana potentially underperforming compared to Ethereum. While SOL price has compelling use cases and narratives, its volatility remains higher due to its lower liquidity compared to Bitcoin and Ethereum. This makes its price more susceptible to significant swings.
SOL Price Prediction: Bullish or Bearish?
Solana's price is likely to continue fluctuating within a broad range, similar to its performance in recent months. The $126 to $160 zone has been a strong consolidation area, with potential to break out toward $169. However, the broader range between $186 and $126 might limit any significant bullish momentum unless $186 turns into a solid support level.
The outlook for SOL price remains bearish-neutral, and any substantial bullish breakout may require a change in market sentiment, such as the launch of spot Solana ETFs. For now, investors should keep a close watch on the key support and resistance levels as September unfolds.
