As expected in the past days, Solana is attempting to correct lower after experiencing a series of rejections in the past weeks. It is on the verge of cracking a crucial support level.
Whenever Bitcoin’s price drops, top altcoins like Solana record double losses and fall into their immediate low. The overall market cap also bleeds along.
SOL decreased by 10% in the past week and brought the trading price to a critical support level of $22. The bears appeared to be stepping back into the market following the drawdown from $26.7.
The bulls will need to defend that support level against a crackdown. If they fail to do so, the support will lose to the bears.
In a bid to win that support, the bulls would have to buy back quickly and push strong above the previous resistance. Failure to hold that level may result in a sharp nosedive that could wash away past weeks of profits within a blink of an eye. However, a solid reaction is needed.
But from all indications, SOL looks weak and set for a correction, which has been in suspense for quite some time now. This potential drop will provide a sizeable discount with more buying opportunities for smart traders and institutional investors to add to their positions.
While some altcoins have moved out of the box, Solana has remained trapped in a descending channel for the past eight months. A dip below December 2022 low will set a new bearish tone for SOL on a macro level.
Solana’s Key Level To Watch Out For
Now that the bears’ presence is becoming dominant in the past few days, we may need to pay more attention to support levels. A plunge below the current support level will trigger a dive to $20.4 and $18.9. There’s also support at $15.1 in case of more drawdown.
Inversely, the bulls will have to reclaim the $24.2 level, where the price fell from yesterday. The resistance to keep in mind above this level is $26.7 and potentially $28.
Key Resistance Levels: $24.2, $26.7, $28
Key Support Levels: $22.3, $20.4, $18.9
- Spot Price: $22.8
- Trend: Bearish
- 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: inueng/123RF // Image Effects by Colorcinch
