Solana (SOL) has fallen 57% since the beginning of the year: can the key support of 120 dollars hold?

Solana (SOL) has fallen approximately 57% since reaching its historical high of $295.83 at the beginning of the year, and is currently hovering around the long-term support area of $120. If it breaks this key support, SOL may face deeper selling pressure, with the next major support level around $71, indicating that the price could fall another 40%.

The technical indicators show that SOL has strong downward momentum. The weekly RSI has formed a bearish divergence and has fallen below 50, while the MACD is also negative, indicating that bearish forces are dominant. The price of SOL has been long constrained within the fluctuation range of 120-250 dollars, and once this range is broken, it will trigger a clear bearish trend reversal. The daily chart shows that SOL is under pressure below the descending resistance trend line, lacking rebound signals in the short term.

Traders are concerned that if the price cannot effectively hold above $120, the downtrend may continue, with bears dominating the market pushing SOL towards the $71 range. Technical analysis shows that the decline of SOL is not a random fluctuation, but a sustained structural adjustment, and it may remain under pressure before a momentum reversal.

Analysts point out that the core reason for the fall of SOL is the dominance of market bears, weak long-term support, and a lack of buying momentum. Investors should closely monitor key support levels and changes in momentum indicators to assess the next phase of the trend.