As Bitcoin faced challenges in maintaining a strong position within the $27k price range, the market structure of Solana weakened. The breach of the psychological level at $20 by the bears further increased selling pressure on SOL. The price of SOL may face challenges in surpassing resistance levels at $20 and $21.
In the recent week, Solana initiated a downward movement after being significantly above $21. SOL gained bearish momentum and dropped below the support level at $20.50.
The bears exerted their dominance, resulting in a price drop below the critical $20 support level. Currently, the price exhibits bearish indications below $20, mirroring the trends seen in Bitcoin and Ethereum. A bottom was established around $18.60, and the price is presently consolidating the losses incurred.
At present, SOL is being traded below both the 50 hourly simple moving average and the price level of $19.50. On the 4-hour chart of the SOL/USD pair, a significant bearish trend line is taking shape, indicating resistance around $19.90.
Currently, the price of SOL is facing immediate resistance around the $19.70 level and the trend line. The subsequent significant resistance is observed near the $20 zone, which aligns with the 50% Fibonacci retracement level derived from the downward move between the $21.51 swing high and the $18.60 low. The primary resistance is now taking shape around the $20.50 level. If the price successfully closes above the $20.50 level, it could potentially rebound towards the $21.50 resistance zone. Further upward momentum may lead to an extension towards the $22 level.
If SOL is unable to surpass the resistance at $20.50, a continuation of the downward movement is anticipated. The initial support level on the downside is expected to be around $19.00. Subsequently, the first significant support is projected to be near the $18.80 level. A breach below this level could potentially strengthen the bearish momentum. If such a scenario occurs, the price of Solana may decline towards the support level at $18.20. The next major support level to watch for would be around $17.50.
Based on Price Analysis, the market capitalization of this SOL is $7,679,477,557. The 24-hour trading volume of the coin is around $290,190,743.
KEY LEVELS :
RESISTANCE LEVEL : $20.00-$21.00
SUPPORT LEVEL : $18.60-$17.80
What is the expected duration of the ongoing correction? Will the bulls be able to sustain their rally in the face of the market correction? Is the current moment favourable for making a purchase? We encourage you to share your perspectives and insights in the comments section below.
Disclaimer: Crypto is not regulated and can offer considerable risks. There may be no regulatory remedies available in the event of any losses resulting from price analysis. As a result, before engaging in any transactions involving crypto products, each investor must perform in-depth examination or seek independent advice.