Solana drops below $85... Is this the start of a bear market?

▲ Solana (SOL)

Solana (SOL) has fallen below the $85 mark, and its upward momentum has rapidly weakened. Technical indicators are uniformly signaling a decline, requiring caution from investors.

On April 29 (local time), FXStreet, a virtual asset media outlet, reported that Solana's price is failing to hold major support levels amidst weakening momentum. Solana is currently trading around $84.5. The Relative Strength Index has fallen below 50, indicating that sellers have taken control of the market. Trading volume is also noticeably decreasing. If strong buying pressure does not enter, there is a high possibility of further decline.

Experts predict that Solana will test the $80 support level. Bearish signals were also detected in the Moving Average Convergence Divergence (MACD) index. The overall contraction of market sentiment is also acting as a negative factor. Although Bitcoin is maintaining the $77,000 level, Solana shows an independent downward trend.

Network activity indicators also show a negative trend. The number of active addresses has decreased compared to the previous week. Investors are concerned about the outflow of liquidity from the Solana ecosystem. There are also warnings that if it fails to rebound in the current range, the price could drop to $75.

Solana is expected to continue its volatile market for some time. Cautionary selling is pouring in ahead of the Federal Reserve's interest rate decision. The dominant analysis is that confirming support levels is a priority rather than a short-term rebound. Investors are maintaining a cautious stance until the market direction becomes clear.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*