The aftermath of November’s collapse (from $38) has positioned Solana in a severe bearish condition. The market has remained non-volatile since it suffers from a low trading volume.
Since Solana’s price crashed to the $11 level, the price actions have remained insignificant due to a lack of interest in the market.
Trading has been looking so dull on the daily chart for the past few days. No interesting setups! Only scalpers can find their way around this trade in the lower time frame as volatility becomes extremely low.
Due to a reduction in Bitcoin‘s price overnight, it fell to $13.4 today after it consolidated around the $14 level over the past week. While the long-term bearish is still dominant, SOL continued to trade sideways to cool off the past month’s sell-off.
It has shown no sign of correction to provide a discount for the sellers. Meanwhile, the $15 resistance level has suppressed buying pressure for weeks. There’s still room for a short-term correction of up to $25 if the buying volume increases.
And if the market falls from the current consolidation phase, the cryptocurrency will continue to lose momentum until it finds a solid level for recovery. Whichever way it goes, the bears are still in control. From a technical standpoint, Solana can still shed 50% of its current value if the price drops below the aforementioned crash level.
Solana Price Analysis (SOLUSDT) – Daily Chart
SOL currently displays no sign of trading activity on the daily. If we adjust the chart to a lower time frame, there’s support at $11.9 and $11, the current low level. If these support levels fail to halt sell actions, we may see a breakdown to $8 and $5 in no time.
On the other hand, a break above the crucial $15.1 resistance could trigger a buying action to the $18.8 level. A further increase should drive the price higher to $20 and perhaps $23.3 in the future.
Key Resistance Levels: $15.1, $18.8, $23.3
Key Support Levels: $11.9, $11, $8
- Spot Price: $13.67
- Trend: Neutral – Bearish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Follow us on Twitter @thevrsoldier to stay updated with the latest Metaverse, NFT, A.I., Cybersecurity, Supercomputer, and Cryptocurrency news!
Image Source: vasilyrosca/123RF // Image Effects by Colorcinch
