Solana failed to advance bullishly above a key resistance trendline due to a rejection. This was triggered by a sudden sell-off, which generated a negative sentiment and similarly positioned the market in a bearish state.
Last week, Sol signalled a bullish move after locating support above the $160 level. Unfortunately, the signal stopped at $176 and turned out to be a retracement move following an unexpected drawdown through the mentioned support to $153 on a single candle.
That gave the bears a little control as they further pulled the price to a low of $145.2 two days ago. Yesterday saw the price through a recovery to $161.8 but it rolled back after facing a rejection to where it’s currently trading at $152.5.
A significant daily close below $150 might put the asset at more risk of rolling back to May’s low – where a major breakdown is likely to occur. This could confirm a double-top pattern should such a scenario come into play.
On the other hand, building a fresh increase from that low should bring a recovery in the market alongside a double-bottom formation, which may lead to a huge bullish rally in the future.
Now that the market is in favour of the bears again, we might need to look out for key potential levels that could provide support in the next few days.
SOL’s Key Level To Watch
In the latest dip, the closest support level for now is $149.3. Below this support lies $136 and $126.34. If Sol loses grip, we may see a dump below the major $120 support held as May’s lowest level.
The collapsed $160 support is now acting as resistance. Above it lies the $173.90 level, corresponding with the important resistance trendline. A flip through this trendline may send the price to $189 and $204.5
Key Resistance Levels: $160, $173.9, $189
Key Support Levels: $149.3, $136, $126.34
- Spot Price: $152.5
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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