Following recent market drops, SOL took a downturn this week after posting minor gains in the preceding week. The price is currently weak as it poises for a breakdown with a 3% loss in the last 24 hours.
Unlike the top four cryptos that charted significant gains during the previous leg-up, Sol recovered briefly but quickly lost momentum after almost tapping $140 last weekend.
Looking at the short-term structure, which is still well-positioned in a downward range, it just initiated another major drop. In fact, the latest drops may crash the price to the February low if the supply turns heavy.
While the bears are now in control, they may face small hurdles at the monthly low. If they manage to surpass it, we can expect bigger drops while it continues to bleed. August’s low may pose a little threat.
However, due to market uncertainty, speculations and sentiments may change positively if the demand outweighs supply. Should that come into play, we may see a strong bounce above the previous high to indicate a slight shift in the landscape.
But as it stands now, there’s no room for buying. This week may end on a highly negative note if the bulls fail to intercept the latest move. Still, the price is up 550% on a yearly scale despite past months of reductions.
SOL’s Key Level To Watch
Source: Tradingview
Sol’s bears are currently eyeing the $120 support. If they reclaim it, the $110 support would be their next target, followed by a breakdown to $100 in the near future.
For now, the $139.8 level stands as resistance. If the bulls manage to push back above this resistance, the higher level to watch for a test would be the minor $149 level before reaching the $163.5 resistance.
Key Resistance Levels: $139.8, $149, $163.5
Key Support Levels: $120, $110, $100
- Spot Price: $128
- Trend: Bearish
- Volatility: High
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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