Solana (SOL) Price Enters ‘No Go Area,’ Points to Sub-$130 Levels 📉
Since September 30, Solana (SOL) has been experiencing a downward trend, decreasing from $160 to approximately $135.52. The cryptocurrency may soon hit its lowest levels in a month, with caution surrounding potential investments.
The Sharpe ratio, a measure of risk-adjusted return, has plummeted to -1.11, indicating risky returns. Five days earlier, the ratio was 2.57, hinting at price appreciation. This drop suggests investing in Solana at current prices may not yield favorable returns.
Adding further to the bearish sentiment, the Chaikin Money Flow (CMF) indicator points to heavy distribution, implying that market sellers are in control. With CMF in a negative range, SOL might struggle for a rebound.
Solana has also breached its previous support at $142.21 and is now near the 23.6% Fibonacci retracement level. A continued slide might see prices descending below $130, even to $124.92, if support fails.
Conversely, if bulls uphold a support line around $130, SOL price could recover to $161.95, counteracting predictions of further drops.
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