Solana price analysis (Bearish) — 223.85 USDT (-6.84% 24h)

SOL is currently trading at $223.85, showing a notable 24-hour decline of -6.84%. The RSI reading of 14.97 indicates severely oversold conditions, suggesting potential for a short-term bounce. However, price remains below both the 20-day SMA ($234.52) and 50-day SMA ($237.37), confirming the bearish momentum. Volume remains elevated at $836M, indicating active participation in this move. Given the extreme oversold RSI and high volatility of 2.74%, I’d recommend caution for short positions here. Consider scaling into long positions with tight stops below $220 for a potential mean reversion play. Wait for RSI to recover above 30 before adding size. Risk management is crucial given the elevated volatility environment.