Solana remains one of the leading cryptocurrencies in the world but has underperformed in recent weeks.
The cryptocurrency market has been underperforming since November. Bitcoin and Ether set new all-time highs of $69k and $4,800 in November, with the total market cap reaching $3 trillion during that period.
However, the market has been in a bearish trend since then, with the total cryptocurrency market cap now below the $2 trillion mark again. Solana is one of the top ten cryptocurrencies by market cap, and it is also underperforming at the moment.
There is no major catalyst behind Solana’s recent poor performance. Over the past week, Solana has lost more than 3% of its value. This is in contrast to the likes of Cardano and Terra that have recorded profits during that period.
At press time, SOL, the native token of the Solana ecosystem, is trading at $137, down by 2% in the last 24 hours. Solana occupies seventh place in the market despite the sell-off it experienced in recent months.
Key levels to watch
The SOL/USD 4-hour chart is one of the most bearish amongst the top ten cryptocurrencies by market cap. The technical indicators show that SOL has been underperforming recently and could drop lower if the current market condition persists.
SOL is trading below its 50-day moving average price of $145. The MACD line has been below the neutral zone over the past few days, indicating a bearish performance for the cryptocurrency. The RSI of 39 shows that Solana is heading towards the oversold region if the market condition remains unchanged.
If the bears remain in control, SOL could drop below the first major resistance level of $125 over the next few hours. However, the second major resistance level at $119 should cap further downward movement in the short term.