Leading cryptocurrency analyst Ali Martinez on Tuesday identified $73.75 as the “most critical” level for Solana (CRYPTO: SOL), where millions worth of SOL were accumulated.
Analyst Says SOL Vulnerable to Steep Declines If…
The “make-or-break” level, as Martinez described, is where over 50 million SOL were bought, according to data from the Unspent Transaction Output Realized Price Distribution chart.
The indicator maps out the exact price levels at which existing coin supplies last moved or were acquired on-chain.
“A sustained close below $73.75 could trigger fresh selling pressure, with $60 becoming the next major downside target,” Martinez projected. “Below that, there is little meaningful support until $50.”
Solana briefly hit a high of $74.43 on Monday before a wave of selling dragged it back toward the $73 zone.
Daan Crypto Trades, another well-known cryptocurrency commentator, noted that SOL has broken below its key horizontal support near $77, with a descending trendline defining a local consolidation range.
SOL Losing Steam?
The derivatives market has also cooled significantly, with open interest in SOL futures falling 7% in a week, according to Coinglass.
A drop in spot price, alongside a drop in open interest, typically indicates buyers are closing their losing long positions.
The Moving Average Convergence Divergence indicator, which compares the 12-period and the 26-period exponential moving averages, flashed a "Sell" signal for SOL, according to TradingView.
The Bull Bear Power indicator, which measures the strength of buyers and sellers, remained "Neutral," and so did the Relative Strength Index.
Price Action: At the time of writing, SOL was exchanging hands at $73.49, up 0.51% over the last 24 hours, according to data from Benzinga Pro. Year-to-date, the coin has plunged 40%.
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