Why is Solana down by nearly 5% today?
Solana has been underperforming over the past 24 hours despite the broader cryptocurrency market performing well.
Solana remains one of the leading cryptocurrencies in terms of market cap. However, the coin has lost nearly 5% of its value over the past 24 hours.
At press time, SOL is trading at $109.41. The bearish performance comes despite the broader cryptocurrency market performing decently over the past few hours. The total cryptocurrency market cap is now above $2 trillion, with Bitcoin rising above the $45k earlier today.
Ether is also trading above the $3,200 level thanks to its excellent performance in recent days. There is no major catalyst behind Solana’s ongoing bearish trend.
Despite losing 5% of its value in the last 24 hours, SOL is up by more than 11% over the past seven days. Amongst the top ten cryptocurrencies by market cap, Solana is the worst performer over the past week.
The cryptocurrency market could continue its recovery over the coming days and weeks. If the bulls remain in control, the total market cap could look to hit the $2.5 trillion mark over the next few weeks or months.
Key levels to watch
The SOL/USD 4-hour chart is currently the most bearish amongst the top 10 cryptocurrencies by market cap. The technical indicators are currently negative, thanks to SOL’s performance.
The MACD line has slipped into the negative territory and could drop lower if the bearish sentiment grows stronger. The RSI of 38 shows that SOL is currently facing heavy selling pressure in the market.
If the bearish trend continues, SOL could drop below the $100 psychological level over the coming hours. In the event of an extended poor performance from Solana, the cryptocurrency would need to defend the second major support level at $84 over the weekend.