Amidst the latest fallout, Solana remained calm above a crucial support level after charting a 10% loss in the past week. It currently looks indecisive, negotiating for the next leg down.
While some top altcoins witnessed a heavy drop since the beginning of the month; SOL is yet to witness a major drop as it continued to trade above the $20 psychological support.
Meanwhile, this support has also become a controversial level in the past weeks. This week, the bears tried to pull the price to $19.6 but a quick bullish reaction brought the price back above the psychological support.
Even despite the drop in Bitcoin’s price over the past hours, SOL still remained calm as it negotiates for the next price movement. Interestingly, the price is still far above its five-month low unlike other major altcoins, which recently revisited that low.
The ascending trendline, which supported the asset for four months is now serving as a resistance following this week’s breakdown. Because of this breakdown, the price may see a deeper correction in the next couple of days.
However, if the psychological support holds well and provided a solid rebound, we can expect a retest at the trendline (as resistance) before resuming selling.
However, looking at the current setups from a technical standpoint, SOL is more likely to witness a huge sell-off in the coming days. The mentioned psychological support remains a key level to watch for a potential breakdown.
SOL’s Key Level To Watch
Right now, SOL’s closest support level for a breakdown is $18.7. The support level to watch after that is $17, followed by $15 and $13.7.
A strong bounce above the current trading level could propel buying to $22.29, where the trend line lies. If the price advance higher, we can expect buying pressure towards $23.9 and potentially $26.77 before breaking up.
Key Resistance Levels: $22.29, $23.9, $26.77
Key Support Levels: $20, $18.7, $17
Spot Price: $20
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.
