Solana (SOL) on the Edge: More Pain Ahead After a 5% Drop?

• Solana has slipped over 5%, trading in the $154 range.
• The market has recorded $36.44 million in SOL liquidations.

The bearish pressure in the crypto market continues to pull back the assets from their recent highs. Bears have dragged the largest asset, Bitcoin (BTC), at around $103.6K, while Ethereum (ETH) trades around $2.5K. Meanwhile, Solana (SOL) has posted a loss of over 5.08% in the last 24 hours.

The recovery of Solana will only emerge after testing key resistance levels between $153.77 and $159.54, amid the fluctuating market. The asset opened the day trading at around a high of $164.08, and later the powerful bears pulled the asset back to $152.44

At the time of writing, Solana traded within the $154.84 level, with its daily trading volume having increased by over 10.33%, reaching $4.22 billion. Furthermore, as per Coinglass data, the SOL market has witnessed a 24-hour liquidation of $36.44 million

Can SOL Escape Further Losses?

The asset’s Moving Average Convergence Divergence (MACD) line and signal line are positioned below the zero line. This crossover likely reflects a sturdy bearish sentiment, and Solana may face more downside correction. The asset may remain under selling pressure

*SOL chart (Source: TradingView)*In addition, SOL’s Chaikin Money Flow (CMF) indicator is stationed at -0.17, indicating moderate selling pressure, and the money is flowing out of the asset. It signals that the bearish pressure has the upper hand in the market.

Assuming the pullback, the Solana price might fall and test the support at the range of $154.07. Further losses might trigger the formation of a death cross, accelerating more downside correction to its previous lows near the $153 level.

On the upside, if Solana mounts toward the $155 range, it could likely target its crucial resistance above it. Breaking this mark might trigger a golden cross to support the recovery, sending the price to $155.50 for a strong upside correction

The daily relative strength index (RSI) at 24.30 implies that the asset is oversold and is undervalued, potentially setting up for a reversal or bounce, though it is not a buy signal. Moreover, SOL’s Bull Bear Power (BBP) value of -15.61 signals a strong bearish pressure in the market, pushing prices below.

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