Solana Holds Key Support To Avoid Drowning, How Long Can This Last?
The price of Solana (SOL) has been volatile against tether (USDT), causing more pain for hodlers. Despite showing such strength, the price of Solana (SOL) has risen from $30 in recent weeks to around $45, as many investors hoped for more relief rallies to around $60. Solana (SOL) prices were rejected and have continued to fall with no significant bounce. (Data from Binance)
Solana (SOL) Price Analysis On The Weekly Chart
SOL’s price dropped from $250 to around $30, representing a drop of more than 70% from its all-time high. After touching a weekly low of $32, the price of SOL rallied to $45, demonstrating great strength as many set prices and expectations for a rally back to $60, but the price was met with rejection.
On the weekly chart, the price of SOL formed a downtrend line as it continued to respect this resistance line, bouncing off to continue its bearish run. Nonetheless, the price of SOL was rejected from the trendline resistance after a while, and it could not break this trendline.
SOL is trading above the key support level of $30; the price of SOL must remain above this level to avoid falling to $24-$20. With the price of SOL holding this support, we may be able to trade higher to the $35 region. A break below $30 would signal a return to lower demand zones and a reluctance of bulls to enter buy orders as there would be more agitation for lower prices.
To resume its bullish trend, SOL’s price must break and hold above the trendline resistance that is preventing the price of SOL from trending higher. If the price of SOL continues to reject the trendline resistance, the price may fall because there are more sell orders than buy orders.
Weekly resistance for the price of SOL – $45.
Weekly support for the price of SOL – $30.
Price Analysis Of SOL On The Daily (1D) Chart
Daily SOL Price Chart | Source: SOLUSDT On Tradingview.com
The daily timeframe for SOL prices continues to deteriorate as prices break to the downside, with prices ranging in a channel with $45 as resistance and $30 as support.
The price of SOL must break out of this range channel with significant volume to restore hope and relief to most investors. A break and close below $30 would be bad for the SOL structure because the price would face more sell orders and panic. If the price of SOL breaks and closes above $45, we may see a minor relief bounce to the $60-$80 range.
The Relative Strength Index (RSI) for SOL is above 40 on the daily chart, indicating more sell order volume.
Daily resistance for the SOL price – $45.
Daily support for the SOL price – $30.
Featured Image From zipmex, Charts From Tradingview