Solana enters a correctional phase after witnessing a surge in the past week. It broke out of the channel, and now attempting to retest it as support. The price currently faces an important ascending trendline.
A retest of last week’s channel breakout is currently in play as SOL looks for support on the white ascending trendline drawn from last December’s low. However, it may still navigate the channel’s resistance if the price corrects deeper.
Similarly, the price action indicates multiple bullish patterns capable of taking the price to the moon in the next few weeks.
The forming head & shoulder pattern on the daily chart suggests a potential bullish. A rebound on the white trendline should produce a perfect right shoulder before surpassing the neckline at $28. That should also give us a flip of the ascending triangle pattern, pushed from $8, $16 and $20 levels earlier this month.
Another indicator of this bullish pattern is the support trendline connecting those mentioned levels. A recovery could happen above the trend line. False breaking it may slip the price to $20 before picking up again.
However, the price has reached an important trading level due to consistent selling over the past three days. As of now, it is deciding on whether to break or make the current weekly low level. So far, SOL has lost roughly 3% in the last 24 hours.
Solana’s Key Level To Watch
SOL calmly trades at $22. If the price dips, the immediate support level to keep in mind lies at $20. It may encounter support at $18.3 before rolling to $15.1 in case of a crash.
Resuming bullish, obstacles for buying pressure are $23.9, followed by $26.77 where the orange supply zone lies. Surpassing this zone could trigger a quick surge to $30 and $33.5.
Key Resistance Levels: $23.9, $26.77, $30
Key Support Levels: $18,3 $20, $15.1
- Spot Price: $22
- 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.
Image Source: ximagination/123RF // Image Effects by Colorcinch
