Solana (SOL) Faces Major Correction Risk After Losing Key Support

Solana (SOL) is flashing serious warning signs after losing momentum near a crucial resistance level. Following a strong rally in April, SOL was rejected at the 200-day EMA around $162, a historical marker between bullish and bearish trends. This failure raises concerns about a deeper correction in the coming sessions.

The altcoin’s breakdown below the ascending trendline that supported its rally since late March suggests fading buying pressure. Coupled with rising selling volume, the technical setup points toward potential further downside. The Relative Strength Index (RSI) has also started to decline from overbought levels, reinforcing that sellers are gaining control.

Immediate support lies around $140 and $130. If these levels fail to hold, the $120 area becomes critical, serving as both a psychological and technical support. Broader market sentiment could accelerate SOL's decline—if Bitcoin (BTC) and Ethereum (ETH) continue to show weakness, Solana’s situation may worsen quickly.

Without renewed buying interest and strong volume to push SOL back above $160, the altcoin risks entering deeper correction territory. Traders and investors are advised to stay cautious. Solana’s impressive recovery could reverse sharply unless key resistance levels are reclaimed soon.