Solana (SOL) Faces Emergency Defense of 50 Million Purchase Zone...Warning of Drop to $50

▲ Solana (SOL)/AI generated image

Solana (SOL) is facing the risk of collapsing below its $73.75 support line. A warning has been issued that if this price cannot be maintained, it could fall beyond $60 to as low as $50.

According to Benzinga, a U.S. economic news outlet, on July 29 (local time), crypto analyst Ali Martinez identified $73.75 as Solana's most critical price level. Data from the Unspent Realized Price Distribution (URPD) shows that over 50 million SOL were purchased in this range.

Martinez stated, "If the closing price continues to form below $73.75, new selling pressure could emerge." He further emphasized, "The next major downside target is $60, and below that price, there is little significant support until $50." Solana rose to $74.43 on the 27th but was pushed back to the $73 range due to selling pressure.

Crypto analyst Daan Crypto Trades analyzed that Solana has already broken below the key horizontal support level around $77. The downtrend line is also pressing down on the short-term price range from above, making it difficult for buying sentiment to recover.

The enthusiasm in the derivatives market has also rapidly cooled. According to CoinGlass, Solana futures open interest decreased by 7% over the week. The trend of both price and open interest falling together is interpreted as a sign that long-position investors who incurred losses are closing out their trades.

On TradingView data, the Moving Average Convergence Divergence (MACD) indicator showed a sell signal. Bull Bear Power, which compares the strength of buyers and sellers, and the Relative Strength Index (RSI) remained neutral. Solana has fallen 40% this year, making the defense of its key support levels a critical variable that will determine its future direction.

[Article Key Summary]

-Solana's key support level is $73.75, where over 50 million SOL were purchased.

-If the closing price continues below $73.75, $60 is mentioned as the next downside target.

-Analysis suggests that if even $60 collapses, there is little clear support until $50.

*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.*