the Solana price Unsurprisingly, it collapsed under the weight of the bears, as the overall cryptocurrency market saw a wave of downward pressure over the past week. The altcoin crashed toward the $60 mark on Friday, June 5, its lowest price level since late 2023.
Given the strength of this recent downward movement, market expectations are leaning toward a continuation of the decline over the next few weeks. With this in mind, here are some important Solana price levels to keep an eye on in the near term.
On-chain data shows that the next support level for SOL is located at around $53
In a June 5 post on Platform X, cryptocurrency analyst Ali Martinez said subscriber On-chain insight into the next levels crucial to the future of Solana price. This observation is based on the UTXO measure of Realized Price Distribution (URPD), which tracks the volume of a given cryptocurrency purchased at a specific price level.
Using this on-chain data, the URPD indicator identifies price areas with high investor activity (and where many investors have their own cost basis). Due to the high investor activity in the area, these cost basis levels usually act as support and resistance for the price of the cryptocurrency (in this case, Solana).
The mechanisms behind this are that investors tend to act in the market when the price of an asset returns to its cost basis.
If investors make profits and the asset price falls to the entry point, they tend to buy more, defending their cost basis and forming a support cushion. Meanwhile, investors who were in the red tend to sell when the price gets closer to the cost basis, Which led to price resistance.
Source: @alicharts on X
In his post on X, Martinez highlighted that Solana price just lost a large support cushion of around $77. The market analyst then identified $53 as the next crucial price support for the altcoin, with almost no cushion between the current price of SOL and this immediate lower bound.
In case Solana price declines and misses the $53 support, the next critical levels are around $35 and $24. While it will take more extreme capitulation for the SOL price to fall towards these specific levels, a return of demand in the spot market is necessary to initiate any recovery.
Solana price at a glance
As of this writing, SOL is at around $63.23, with a roughly 8% decline over the past 24 hours.
The price of SOL on the daily timeframe | Source: SOLUSDT chart on TradingView
Featured image by Aivaras Sakorovás | Dreamstime.com, chart from TradingView
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