Solana lost over 10% of its value in a month after failing to extend bullish in March. It currently trades tightly in a critical area with no sign of a break. However, a bearish pattern is formed on the daily chart.
Solana remained trapped in a descending channel after witnessing a decent recovery in the first quarter of the year. It looks calm around the channel’s upper boundary following a series of rejections in the past few days.
Last month, it rejected the $24 level and dropped slightly below the $20 psychological level. But the price later recovered above that level and entered a critical trading area, which moved the price from little-to-no volatility up till now.
While this psychological level continues to serve as a firm support, a notable drop below it will activate another bearish action towards the channel’s lower boundary, causing a huge price loss.
In the opposite direction, an increase above the channel’s upper boundary could rally the price hard toward the current yearly high before retracing back.
However, it is essential to say that as long as the price continues to trade inside this channel, the trend will remain bearish until a breakout occurs. The price is down by a weekly 3% at press time.
Solana’s Key Level To Watch
If Solana cracks the current support level, the potential level to consider for drawdown is $18.8 and perhaps $16. The next support levels to watch out for are $15.1 and $13 before crashing to $11.
But if the price manages to reclaim the $22.3 and $24.5 resistance levels, the next key price target would be $26.7, marked as the yearly high. The higher levels to watch for a breakout are $30 and $33.5.
From a technical perspective, the bears are likelier to have the upper hand than the bulls.
Key Resistance Levels: $22.3, $24.5, $26.7
Key Support Levels: $20, $16, $15.1
- Spot Price: $20.5
- Trend: Neutral
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: vasilyrosca/123RF // Image Effects by Colorcinch
