Despite the past month of increase, Solana remained trapped in a channel following a rejection at resistance. This rejection led to a steady loss for a week as more selling pressure could be underway.
Following the mid-month rebound, which provided the market with another buying opportunity of about 22%, Solana managed to tap $27 before the price started to drop a week ago. These consistent drops led to a halt in the bullish rally.
While the bears took a break above the $22 level yesterday, it has held that price level as support ever since. They are trying to drag the price lower but it appeared the selling pressure is currently low.
If the price continues to turn in favour of the bears, SOL could record a huge loss in the future with a potential 20% drop. However, there’s still hope for the bulls if the price can recover above $20 – which remains a crucial support level the bears are eyeing for a crackdown.
Meanwhile, Solana remains bearish from a long-term perspective as it continues to respect a descending channel pattern formed over the past eight months. A surge above this channel will set the asset on a massive rally. The price is down by % at press time.
Solana’s Key Level To Watch Out For
The price chart indicates that SOL has been in a range mode for the past six weeks. The mentioned $22 and $27 levels are holding as solid support and resistance on the daily scale.
If we consider a move below this holding support, the immediate level to pay attention to is $17.7 before looking for more lows at $15.1 and perhaps $12 in the future.
A heavy rebound should drive the price up to $26.7 before breaking the holding $27 resistance level to $30 and $33.5 in no time. A retracement is expected from here before the price drives at the $37 resistance level.
Key Resistance Levels: $26.7, $30, $33.5
Key Support Levels: $20, $17.7, $15.1
- Spot Price: $22.8
- Trend: Bullish-Neutral
- 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: ximagination/123RF // Image Effects by Colorcinch
