Solana declined heavily below the crucial $26 support level after touching the $38.8-mark last week. The latest sentiment following the crypto market has contributed to the bleeding. From the look of things, the bearish action is not finished yet, as it looks for a solid support level to cool off the pressure.
The latest drop in Solana’s price has positioned the coin in a downward trend after trading between the ranges of $26 and $48 for five months. The breakdown of this range structure has led the crypto to a current weekly low of $12.4. The daily candle formation suggests a high selling volume in the market.
A close look at the price actions also reveals this week as the most volatile period since June. If the price continues to tumble, SOL will likely record more losses in the future. The price could drop to as low as $5 from a mid-term perspective.
However, the sell-off may be suspended if the March low – $12 – can support the market. A such scenario should give us a healthy correction as we may see a retest of the recent breakdown level. Whichever way, we may need to watch out for more market development in the coming days.
It remains the 15th best-performing crypto by market cap after recording a staggering 43% loss over the past 24 hours. Now trading at $15.
Solana Price Analysis (SOLUSDT) – Daily Chart
As mentioned above, Solana currently holds monthly resistance at the $38.83 level. In case of a recovery, the closest resistance level to keep in mind is $20. The following resistance level is $26; the five-month support break level. The resistance level above it lies at $33.57.
We may need to watch the $12.4 level as immediate support for a bearish continuation. Below this support lies the $9.3 level, which serves as March 2021 support. There’s also support at the $7.6 level if the price drops further.
Key Resistance Levels: $20, $26, $33.57
Key Support Levels: $12.4, $9.3, $7.6
- Spot Price: $15
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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