As most lower-cap coins fell to their four-month low some weeks back, Solana consolidated and traded tightly above a key support level. It slipped below that level yesterday with a slow bearish build-up.
After plunging to a multi-month low two weeks ago, SOL remained calm throughout last week following a bearish slowdown across the crypto market. But it started to show signs of weakness last weekend.
The $20 key support level, which serves as a solid defense line for the bulls appears to be losing its grip after holding for months. Last weekend saw that support stylishly bridged due to a minor daily drop. Although the drop is not yet noticeable as SOL may reclaim it back if it sees a small daily gain.
While that support level has become a tough area for the bears to conquer, it may continue to hold firm if the bulls show a strong reaction. A small daily gain could also restore that support quickly for a bounce.
However, losing that support this week could result in a big shakeout that is capable of bringing the price to as low as $10 within a short period. The price is still far from its four-month as the sellers build up for actions.
In the middle of the build-up, it has seen a 1.1% drop in the last 24 hours to $19.7. More losses are likely to surface if the price continues to fall by the day.
SOL’s Key Level To Watch
The closest support level to keep in mind for a drop is $18.7. Pushing lower, the subsequent level to consider as support is the $17 level and potentially $15 on the short-term perspective.
If SOL climbs back above the mentioned key support level, we can start to consider an increase to $21.5. The following resistance level for a test lies at $23.1 and $25.
Key Resistance Levels: $20, $21.5, $23.1
Key Support Levels: $18.7, $17, $15
- Spot Price: $19.7
- 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.