Solana Remains Under Pressure As Crypto Market Sell-Off Continues

Bitcoin’s Move Below $50K Put Significant Pressure On Leading Coins

The recent Bitcoin‘s move below the important $50,000 level has put material pressure on other leading coins. Solana found itself under the most significant pressure among top-10 coins, and it has already lost more than 7% of value in the last 24 hours. However, it remained the world’s 5th cryptocurrency by market capitalization as other coins like Cardano, XRP, Terra, Polkadot and Avalanche also faced a material sell-off.

It should be noted that the current pullback is not correlated to any sell-offs in other riskier assets. For example, S&P 500 futures are currently moving towards all-time highs that were reached yesterday, which shows that traders’ appetite for risk remains strong.

It is a worrisome development for crypto bulls as the simultaneous sell-off in leading coins shows that some market players are moving their capital out of the crypto segment. However, it is not clear whether this trend will be sustainable as funds may rush to establish new positions at the very beginning of the next year, which may be bullish for most riskier assets, including cryptocurrencies.

Solana May Break Out Of The Recent Upside Channel

Solana is currently trying to settle below the support level near $178. Importantly, it is also trying to break out of the recent upside channel. In case Solana manages to settle below $178, it will gain additional downside momentum and move towards the next support level which is located at $170.

A move below the support at $170 will push Solana towards the support at $164. In case Solana declines below this level, it will head towards the support at $157.

On the upside, Solana needs to get back above the 20 EMA near $186 to have a chance to develop sustainable upside momentum. The next resistance level is located at the 50 EMA near $190. A move above the 50 EMA will open the way to the test of the resistance near the $200 level.

Taking a look at H1 chart, we can see that RSI has recently moved back into the moderate territory, so there is enough room to develop downside momentum in the near term. There are no material support levels between $178 and $170, so Solana may quickly get to the test of the next support level in case the crypto market pullback continues.