After resisting a plunge below the $185 to $188 level, Solana (SOL/USD) was showing that it was ready to bounce off from a bearish market that developed in early November. The $185 level was becoming a crucial support, as SOL/USD jumped several times, going higher despite the bearish sentiment that engulfed the crypto industry. However, the strength of SOL/USD is now flagging, and a break below the $185 support is exposing the crypto token that prides itself in having high network speeds and low transaction costs.

Solana has gone down by 7% in the past 24 hours, and by 24% in the past week. The drop reflects the general weaknesses in cryptos, with Bitcoin down 2% in the past 24 hours and more than 15% in the last week. 

SOL/USD– A 4-Hour Technical Outlook

SOL/USD Loses its Grip on Key Support at $185

The four-hour SOL/USD chart shows that it is trading below the 20 (red) and 50 (blue) moving averages, indicating further downward pressure for the fifth largest cryptocurrency. After a break below $185, the bulls could take a back seat as the bears take control. With a dampened sentiment in the overall crypto sentiment, we only project lower prices for SOL/USD in the meantime.

The bearish sentiment in SOL/USD is far from over following new reports of DDoS attack that caused congestion in its network. Although the platform remains online, the news could have shaken confidence among Solana followers. At the time of writing, SOL/USD was trading at $175 and looking to go further down. Could the bearish trend open more weaknesses, or would the pair reverse and reclaim former highs?

SOL/USD- Trade Idea and Key Levels to Watch

We maintain a bearish view on SOL/USD as long as the pair remains below $185. The bearish market sentiment and the fundamental developments around it point towards further weaknesses in the near term. If the trend continues, the key level to watch for a potential trend reversal are $152, $141 and $139. The three levels have acted as short-term support before and any price drop could see SOL/USD settle zones before we witness a rebound. Given the lack of a clear price action signal, I would recommend we be patient before taking any buy trades until SOL/USD settles at a key level or rebounds above $185, which has not turned into a resistance. Happy trading!