While many larger cap altcoins increased notably in the past week, Solana SOL remained weak on the daily chart as it struggled to recover. It has formed a double-top pattern with an additional 2% loss overnight.
Amid last week’s meltdown, Sol witnessed a lot of loss and rolled to its lowest level in three weeks. It recovered from that low last weekend but the volatility was not strong enough to bring the bulls back.
As a result, it halted buying under $185 yesterday and now looks weak with a 2% decrease overnight. Technically, this meltdown was triggered by a major sell from the $204 level, creating a double-top pattern.
However, the bearish pattern remains valid on the daily chart as the price approaches the neckline. A break below this neckline could lead to a huge loss for the fifth-largest asset by market cap.
Another pointer to this incoming sell lies in the daily volume indicator, which is now on the fall. The latest congestion in Solana’s network might also contribute to the current price drop.
Conclusively, Sol’s outlook is still bullish on the macro level but it is likely to witness a broader correction following several bearish signals on the daily chart. If the bulls manage to return, they must retake the current yearly high to regain control fully.
SOL’s Key Level To Watch
Right now, the price is facing the $165 support level – where the neckline stands. Breaking it could slip the price to $155.2 and perhaps $143.5.
The $184.6 level should serve as resistance in the meantime. If the bulls return and manage to push above this level, the next line of resistance for an increase would be $190 and $204.5. The $210 level is the main resistance to watch for a break-up.
Key Resistance Levels: $184.6, $193, $204.5
Key Support Levels: $165, $155.2, $143.5
- Spot Price: $175
- 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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