After an overall decline in the crypto market, Solana came under selling pressure, erasing the performance of its last month of growth. Let's look at the future outlook for SOL price.
Location of Solana (SOL)
After reaching a peak at $211, Solana suffered a decline bringing its price towards $170. This level acted as support for the SOL, allowing it to regain momentum, but not enough to break through its latest high. Thus, Solana stabilized once again at $170 and unfortunately for it, the overall decline in the cryptocurrency market caused it to fall violently by more than 30%. It was only from $120 that the price of the cryptocurrency aroused buying interest, allowing its price to quickly regain $150. As positive as this may seem, it seems that this interest is losing strength compared to that of sellers.
Indeed, at the time of writing, the price of Solana is trading around $128. Thus, the latest rise in the SOL appears to be absorbed by sellers. Although the underlying trend remains bullish, Solana is now below its 50-day moving averages. The oscillators, as well as the SOL itself, unequivocally illustrate a downwardly revised market dynamic. Thus, each of these elements suggests the continuation of the downward movement that the cryptocurrency has started.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Assumptions for the price of Solana (SOL)
- If the price of Solana remains above $120, we could anticipate a bullish continuation up to the $150 level. The next resistance to take into account, if the upward movement continues, could be $170 or even $180. At this point, that would represent an increase of more than 39%.
- If the price of Solana fails to stay above $120, we could envisage a return to $110. The next support to take into account, if the bearish movement continues, would be more or less around $95. At this point, that would represent a decline of less than -26%.
Conclusion
After reaching a peak of $211, Solana suffered a fall of more than 40% amid an overall decline in the cryptocurrency market. Despite a subtle revival of buying interest and an underlying trend that is still upward, numerous indicators show a potential extension of the downward movement. Thus, it will be crucial to carefully observe the price reaction at different key levels to confirm or refute the current hypotheses. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.
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