Solana saw a bounce off $20 a week ago and added a $4 gain to its price. Half of this gain has been washed away in the past hours due to a bearish reaction. More losses are expected if the bulls fail to regroup.
As expected, Solana retested the $24.2 level following a 7-day recovery. This price level saw rejection yesterday with a bearish candle, which brought the price to a close of $22.3 – last week’s breakdown level.
The asset has increased by a few cents today with a trading price of $22.5. The buyers are trying to push the price off that solid level. Even though they successfully advance the price, they could encounter hurdles around the channel’s resistance at $26.7 – marked as a two-month high.
A significant surge above the 9-month channel will take SOL completely out of the bear box and launch it into a bull run.
In the opposite direction, a continuous drop from the current trading level will trap the price more in the box. Such a scenario could make the price fall to as low as $11.
Solana will continue to remain bearish in the long-term perspective as long as it continues to respect this descending channel. The price is still down by 80% in a year.
Solana’s Key Level To Watch Out For
The market structure reveals that SOL is still bullish on the daily chart. Retaking yesterday’s rejection level, SOL will still need to flip the two-month high – a clear breakout of the channel – to validate a continuation of the bullish trend. The $30 and $33.5 resistance levels are key targets in case of a breakout.
On the downward range, last week’s rebound level – $20 – remains a crucial support for a breakdown. Below it lies hidden support at $18.9 and $17.7 before slipping to $15.1.
Key Resistance Levels: $26.7, $30, $33.5
Key Support Levels: $20, $17.7, $15.1
- Spot Price: $22.6
- Trend: Bullish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: valedol/123RF // Image Effects by Colorcinch
