Solana (SOL) blocked by the $83 wall, will the $77 support line even collapse?

▲ Solana (SOL)/AI-generated image ©

Solana (SOL), which had recently shown a relentless upward trend, is experiencing a particularly sharp decline amidst a general market downturn, hitting a strong sell wall at a major resistance level.

According to CoinMarketCap, a cryptocurrency market data aggregator, on July 8 (local time), the SOL price plummeted by 4.50% over 24 hours to $77.82, failing to escape its bearish trend. This decline is interpreted as a technical rejection after repeated failures to break through the key resistance zone between $81.50 and $83. The simultaneous sharp drop in buying momentum and trading volume further exacerbates the downward pressure.

In fact, SOL has fallen below its moving averages, turning into a strong downtrend. The 7-day Relative Strength Index (RSI) plummeted to 12.39, entering an extremely oversold zone, and daily trading volume decreased by 9.35% to just $2,500,000,000, indicating a significant lack of conviction among whales and investors to defend buying pressure at higher price levels. Market experts pointed out that the recovery of the psychological threshold of $80 for SOL in the short term will be the first sign of a rebound.

This bearish trend is a result of a combination of risk-off sentiment across the broader cryptocurrency market and SOL's inherent structural selling pressure. While Bitcoin (BTC) dropped by 1.03% and the total crypto market capitalization decreased by 1.42%, SOL showed a larger decline than the market. Notably, Pump.fun, a memecoin launchpad platform, continued to flood the market with large supplies, including an additional sale of 122,498 SOL (worth approximately $10,080,000) on the same day to convert fee revenue into stablecoins, thus hindering price increases.

Going forward, market attention is focused on the short-term support zone between $77 and $78. If this support line holds and Bitcoin maintains a stable trend above the $62,000 mark, SOL also has a chance to attempt to reclaim $80. However, if the $77 line breaks, a cascade of long position liquidations could be triggered, and the risk of a flash crash, sliding to the next major support level of $74, cannot be ruled out.

In conclusion, SOL's future direction is expected to be determined by Bitcoin's price movement and whether Pump.fun continues its additional selling pressure. For now, it appears a fierce short-term battle between buyers and sellers will ensue, determining whether buying pressure revives and holds above $77 by setting higher lows, or if it retreats to the $74 mark due to further selling pressure.

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