The cryptocurrency market has started the week with a strong bearish trend, causing significant corrections in top tokens. Bitcoin, the market leader, has failed to hold its value above $66,000, while Solana has lost 7.13% in the past 24 hours and 10% since the week began. This negative price action has raised concerns about the future prospects of Solana crypto.

Solana's Bearish Pattern

Solana's price has been under bearish influence for a month, forming a descending channel pattern in the 1D time frame. The altcoin continues to trade within this range, hinting at a high potential of testing its support trendline. During this time, Solana has lost approximately $20 billion from its market capitalization, dropping to the 5th position in the cryptocurrency market list. It has also formed a massive gap of $24 billion from the valuation of Binance Coin (BNB), which currently holds the 4th highest valued crypto token globally.

Market Sentiments

The EMA 50-day acts as a resistance to the price chart, indicating an increase in bearish sentiment. However, the EMA 200-day has supported the price in the 1D time frame, highlighting a mixed sentiment in the cryptocurrency market. The Moving Average Convergence Divergence (MACD) displays a constant red histogram in its chart, with its averages showing a steady decline. This indicates a weak bullish sentiment for the SOL coin price.

Will Solana Bounce Back?

If the market holds the Solana price above its crucial support level of $127, the bulls will regain momentum and test its resistance level of $155. Furthermore, if the market experiences a bullish action, the SOL token will break out of its resistance trendline and head toward its upper resistance level of $181.50 in the coming time. Conversely, if the bears continue to hold power over the bulls, the Solana crypto will break down its trendline and its crucial support level of $127 and prepare to test its lower level of $100 during the upcoming weeks.