Solana On 5-Day Losing Streak: Can Bulls Make A Comeback?

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Solana On 5-Day Losing Streak: Can Bulls Make A Comeback?
Solana has been in a free fall, after suffering bearish pressure near the psychological level of $160.
The social sentiments have started to improve indicating a possible recovery in the price.

Solana (SOL) price has been on a free fall for the last five intraday sessions losing nearly 15%. Moreover, except for the buying sessions, this has been a bearish dominated month for Solana.

SOL price performance highlights a 22% loss in the asset's value this month. At the time of writing, Solana was exchanging hands close to $138.5 recording a nearly 1.08% loss in intraday.

Let's analyze and try to figure out whether Solana could break this losing and recover in the next week?
Social Sentiments Highlight Increasing User Engagement
Despite the losing trend in the recent sessions, the analysts noted an important development in on-chain metrics: social metrics. The social metrics include social dominance, social volume, and activities on social media platforms.

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As per the analysts, the social dominance as well as social volume curve has improved in the recent sessions indicating the rising engagement of Solana on the social media platforms like X (Formerly known as twitter), Telegram etc.

Moreover, the other social metrics twitter follower curve hints a positive growth of nearly 2000 users a week. The increasing engagement of the users over social media often reflects a positive impact on the asset price most of the time.

Moreover, Solana boasts a market capitalization close to $64.67 Billion placing it at the 5th in the crypto space. The transaction volume has dropped to $2.19 Billion losing 9% a day. Currently, the volume to market cap ratio at 3.42% suggests low volatility in the crypto.
Can Solana Continue to Slide Towards $130 Level?
The recent selling pressure has widened the losses incurred this month again. Solana experienced a tough month induced with volatility. The price started off August with a sharp decline from $180 level to $110 level. Thereafter, the bulls then turned aggressive and the price recovered back till $163. Again the bearish forces dragged the price close to $140 level.

From a technical standpoint, Solana price has lost the support of important key moving averages of 20, 50 and 200 days exponential moving averages indicating weakness. On the lower side, the $140 level may act as an immediate support which if breached may allow sellers to dominate till the next support of $130 level.

At the time of writing, both the RSI and 14 day SMA line had stepped down below the mean line of 50. Moreover, a bearish crossover of both the lines was observed indicating a possible bearish trend continuation.

Solana (SOL) experienced a significant decline, losing nearly 15% over the last five sessions and 22% this month. Despite the bearish trend, social metrics show positive growth, with increased social media engagement.

The whole month has been volatile for Solana, dropping from $180 to $110, then recovering to $163 before falling again. From a technical perspective, SOL has lost support from key moving averages of 20, 50 and 200 day EMAs. Currently, the price was hovering near $140 as immediate support and may slide towards the $130 if bulls fail to defend. Both RSI and 14-day SMA indicate a potential bearish continuation.