Following the latest drop in Bitcoin’s price, Solana also dropped by a daily 8% and lost the crucial support level. This sudden drop signals a sell action, which could send the price lower before the end of the month.
From the low of $8, Solana bounced and rallied by over 200% to the high of $25 within three weeks. It consolidated around that price for days before the price fell sharply to around $20.4 today.
The recovery seemed to have reached an exhaustion point and might take a downturn in the coming days. Today’s reduction is an indication of weakness in the price. The sellers appeared to be stepping back.
Meanwhile, Solana has continued to trade inside a descending channel with a swing-low pattern. The price can still increase up to $26 and of course $28 if the buyers regroup well. If not, the next few days may come with a serious bloodbath.
A 50% correction is expected from its three weeks high if the price continues to fall. For Solana to resume upward movement, it would need to overcome the previous high to claim more gains.
However, the price is still up by 40% in a week despite the losses across the crypto market today.
Solana’s Key Level To Watch Out For
Source: Tradingview
Solana just broke down from its 3-day consolidation phase. And it may look for lower levels in the coming hours.
In anticipation, the closest support level to watch out for is $18.93. Below it lies the breakout level of $15.12 during last week’s trading. Another support to keep in mind is $11 if the price further dips. A breakdown from here would confirm a continuation of the long-term bearish.
If the price recovers above the previous resistance level of $25, the next buying target would be $28, with a close one at $30 – around the channel’s resistance. A significant break above this channel will validate a strong buy.
Key Resistance Levels: $25, $28, $30
Key Support Levels: $18.93, $15.12, $11
Spot Price: $21.95
Trend: Bullish
Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Image Source: moxumbic/123RF // Image Effects by Colorcinch
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