Solana appears weak today after posting gains for a week. The recent rejection at the key resistance level could cause another swing low if previous support fails to suppress current sell pressure.
The recent recovery across the global crypto market made some altcoins revisit January’s breakdown support level of $20. SOL retested this support level as resistance yesterday but failed to push through it.
Unfortunately, this level was rejected while the price took a downturn today. This latest sell action looks like another swing-low setup – which is capable of dragging down the price to $11 in the next few days.
Looking at the lower low and lower high pattern on the daily chart, this might just be a perfect short opportunity on futures trading. But the whole sentiment looks dicey with the recent surge in Bitcoin’s price.
Another thing to consider for bearish is the descending channel that has been in play since May. Things might get worse if the price continues to respect this pattern. The price needs to break up this channel to validate a mid-term bullish movement.
However, SOL can continue to recover if Bitcoin resumes the recent bullish actions above $26k. Otherwise, the past weeks of decline could continue shortly.
While the cryptocurrency remains bullish on a lower time frame, the long-term bearish sentiment is still in play on a higher time frame.
Solana’s Key Level To Watch
Considering another drawdown with the current sell setup, SOL’s support is held at $18.7 and the previous low is marked at $16. Below this support lies a close level at $15.1, followed by $13 and $11 in case of a heavy drop.
On the other hand, the $22.3 resistance level remains a crucial breakpoint for a bullish rally. It may encounter minor resistance at $24.5 before surging through a five-month structure at $26.7. Above it lies the $30 and $33.5 resistance levels.
Key Resistance Levels: $22.3, $24.5, $26.7
Key Support Levels: $16, $15.1, $11
- Spot Price: $20.2
- 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: kviztln/123RF // Image Effects by Colorcinch
