Hold or Fold? Solana (SOL) Faces a Crossroads

• Solana is currently trading around $174.
• Daily trading volume has surged by over 24%.

The mixed sentiment across the crypto assets has triggered the price to bounce between green and red candles. With the fear and greed index value resting at around 68, the greed sentiment lingers in the market. The largest assets, Bitcoin and Ethereum, trade near $108.8K and $2.6K

Notably, Solana (SOL) has registered a modest spike of over 0.10% in the last 24 hours. The asset can enter the recovery zone after testing its crucial resistance levels. SOL kicked off the day trading at the bottom level of $172.68, and eventually, the brief bullish shift pushed Solana toward its daily high of $179.22, after breaking the $177.67 trading mark.

At press time, Solana traded within the $174.38 range, with a market cap of $90.75 billion. Meanwhile, the daily trading volume has increased by over 24.70%, reaching $3.53 billion. As per Coinglass data, the Solana market has experienced a 24-hour liquidation of $5.95 million.

Will Solana Face More Downside Ahead?

Solana’s four-hour technical indicators report that the Moving Average Convergence Divergence (MACD) line has crossed below the signal line. This crossover indicates bearish momentum within the market, and the asset may face intense downside correction

*SOL chart (Source: TradingView)*Moreover, the altcoin’s Chaikin Money Flow (CMF) indicator is positioned at 0.12, suggesting moderate buying pressure, and the money is flowing into the asset. If CMF sustained above, alongside rising price and volume, it can likely confirm a bullish trend.

If the price of SOL witnesses a sharp pullback, it could test the immediate support at the $170 level. A steady downside correction of SOL triggers the death cross to emerge, pushing it to its former lows at around $164.30.

On the upside, if the SOL bulls appear, the price could likely move toward the nearby resistance range of $179.45. A breakout above this mark might push the golden cross to form, and send the price to $185, assisting the recovery of the asset

*SOL chart (Source: TradingView)*In addition, the altcoin’s daily relative strength index (RSI) of 46.28 signals the asset is in neutral territory, leaning slightly toward the oversold side. Besides, the Bull Bear Power (BBP) value of Solana at -2.45 hints that bears currently have the upper hand in the market. A noticeable bearish pressure may loom if the value decreases over time.

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