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SOL Price Analysis: Solana (SOL) Falls 35% From All Time High, Here Are the Levels to Watch?

SOL Price Analysis: Solana (SOL) Falls 35% From All Time High, Here Are the Levels to Watch?

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Solana (SOL) price has been one of the best performing coins over the last few weeks as prices have risen from $70 to $190 in a little over two weeks. This price action has been truly impressive as SOL is now a top 10 cryptocurrency by market cap. Solana is a highly functional open source project that aims to provide decentralized finance solutions using its highly efficient blockchain. SOL now has many advantages to other blockchains such as ETH, Solana (SOL) can process a massive amount of transactions for a little amount of cost. All these features have led many big players to become bullish on the Solana ecosystem.

While looking over the last few weeks, we can see how SOL price has been holding above a support trend line. This price action has formed a pattern which is called an ascending broadening wedge. As time moves on, each trend line of this pattern spreads out more. For the past few weeks, price has highly respected each of these trend lines.

At the time of writing, SOL is attempting to hang on to its bottom support trend after the crypto market went for a nasty fall yesterday. For SOL to continue on with its bullish trend, it must stay above this trend & break above the major resistance mark of $167.

Solana Price Analysis: SOL/USDT 4 Hour Chart

Considering that SOL price is currently trading above its major support of $151 along with the support trend line that has held for many weeks, we can assume a break below these marks will be disastrous for short term growth. Along with these two major support marks lie the 30MA which has acted as support ever since $70. In the case that bulls fail to hold these marks & price gets pulled below, we should expect SOL price to start a short term downtrend that will first land prices within the major support of $127-$136.

While looking at the Stochastic RSI, we can see that strength has fully reset into the oversold territory. The MAs have been curling around which may indicate a bounce is soon to come. The strength must break above the 50 value to be confirmed back into a bullish state.
While looking at the MACD we can see a support level that has been respected for nearly 2 weeks now. As long as the MAs of the MACD can hold above this support, SOL price is in a bullish state.

SOL Intraday Analysis

Spot rate: $155
Trend: Bullish
Volatility: Medium
Support: $151
Resistance: $167

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

About Author

Domenic

Domenic Fiore has a love for the financial markets. He decided to skip the college route to pursue entrepreneurship. He saw the vision to become an entrepreneur and wanted to achieve success from a young age. Domenic owned & operated a car detailing business since the age of 16, along with being a part of two CBD businesses through 2018 & 2019. He started his investment and trading career early trading in 2017 when he bought a newly released cryptocurrency alt-coin and saw 10x return in a few months. He then realized there was much potential and dove head first into learning everything he could. He became very passionate about technical analysis and knew it was his route to financial freedom. Over the last 4 years, Domenic has shared his analysis with many groups and received amazing feedback. Shortly after he wanted to help assist in the pursuit of spreading and helping others achieve success in the trading industry.

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