The Solana price unsurprisingly crumbled under the weight of the bears, as the general cryptocurrency market saw a wave of downward pressure over the past week. The altcoin crashed towards the $60 mark on Friday, June 5th, its lowest price level since late 2023.
Given the strength of this recent bearish move, market expectations are tilting towards a continuation of the downturn over the next few weeks. With this in mind, below are some of the critical Solana price levels to watch in the near term.
On-Chain Data Shows SOL’s Next Support Level Lies Around $53
In a June 5th post on the X platform, crypto analyst Ali Martinez shared an on-chain insight into the next levels critical to the future of the Solana price. This observation is based on the UTXO Realized Price Distribution (URPD) metric, which tracks the volume of a particular cryptocurrency purchased at a specific price level.
Using this on-chain data, the URPD indicator maps out price zones with significant investor activity (where many investors have their cost basis). Because of significant investor activity in the region, these cost basis levels typically act as support and resistance for the cryptocurrency’s price (in this case, Solana).
The mechanics behind this are that investors tend to act in the market when an asset’s price returns to their cost basis.
If investors have been in profit and the asset’s price falls to their entry point, they tend to buy more, defending their cost basis and forming a support cushion. Meanwhile, investors who have been in the red tend to sell when the price nears their cost basis, resulting in price resistance.
Source: @alicharts on X
In his post on X, Martinez highlighted that the Solana price just lost a significant support cushion around $77. The market analyst then identified $53 as the next crucial price support for the altcoin, with barely any cushion between SOL’s current price and this immediate floor.
In the event that the Solana price falls and loses the $53 support, the next critical levels lie around $35 and $24. While it would take severe further capitulation for the price of SOL to fall towards these identified levels, the return of demand in the spot market is necessary for any recovery to begin.
Solana Price At A Glance
As of this writing, the price of SOL stands at around $63.23, with a nearly 8% downslide in the past 24 hours.
The price of SOL on the daily timeframe | Source: SOLUSDT chart on TradingView
Featured image from Aivaras Sakurovas | Dreamstime.com, chart from TradingView
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