Solana’s native cryptocurrency SOL is among the top coins by market capitalization that posted heavy losses this week. The bearish conditions have been strong enough to push it out of the same range it has been trading for nearly 10 weeks.
The token has been continuously falling for the past six days. It dropped as much as 25% during this period, to its $ 36.25 print price.
This result resulted in an exit from the uptrend in which SOL has been trading since mid-June.
Source: TradingView
SOL’s extended bearish performance over the past 24 hours at press time had already pushed to the next support level after exiting the ascending range.
This is around the $ 36 price level that previously served as support on July 26 and June 4.
There is a possibility that the bears could extend their dominance and push beyond this level. In case of such a result, the next level to watch out for is close to the $ 32 price level.
SOL previously tested this support level again in late June and in the first two weeks of July.
Well, the token’s social dominance has dropped close to monthly lows in the past 24 hours. This is normal considering that most of the social dominance has reverted to larger coins like Bitcoin in light of their slump this week.
However, the weighted sentiment of SOL has improved slightly over the past three days.
Source: Santimento
The slight improvement in weighted sentiment despite the downside could be a positive sign. It suggests that investors are starting to expect a recovery after the recent slump.
Investors looking to buy the decline will likely select the previous support zones to buy back at lower prices.
Despite the current headwinds, Solana has had strong development activity over the past four weeks.
Source: Santimento
Healthy development activity is often encouraging for investors during a bear market.
It confirms that the project is all about growth and this is the case with Solana. This can encourage investors to accumulate more SOL at lower prices.
SOL’s current price action has moved in tandem with the rest of the market.
This means that investors should also keep an eye on prevailing market sentiments.
This will help determine whether sentiment will shift in favor of the bulls as the weekend approaches.