Market Analysis

SOLANA PRICE ANALYSIS & PREDICTION (February 20) – Sol Reinitiates Drop After Facing Resistance, Has Recovery Ended?

Sol recovered well in the past month but appeared to be losing buzz due to a slight rejection. Failure to resume positive actions may trigger a bearish move. The price is currently up 30% in the past month.

Following the late January bounce off the $80 level, Sol made an impressive recovery as it steadily increased to $118.7, near its two-year high last week. The rally was intercepted and the price dropped to precisely $105 (on Binance) last Saturday.

The price bounced back above the minor $107.5 support level and has found it difficult to push through last week’s high due to buying exhaustion. It reinitiated drop yesterday and fell near this minor support at the time of writing. 

A crack below the mentioned support could lead to a serious meltdown in the next couple of days. And losing last month’s low in the process could trigger a huge sell-off, confirming a bearish (double-top) pattern on the daily chart.

Such a scenario could cause a 50% correction from the breakdown level. It is too early to start considering bearish as the trend is still much in favour of the bulls. A weekly close above $127 could fuel a massive explosion.

While the top four cryptocurrencies by market cap have soared to a new multi-month peak in the past month of increase, Sol is yet to find a break. 

SOL’s Key Level To Watch

Source: Tradingview

Sol has seen double rejections in the past week and is now on the verge of cracking down. If it loses the $107.5 support again, the subsequent support to consider for drops is the crucial $100 level, followed by $90.

Increasing above the $116.9 resistance could allow it to reclaim the vital $126.3 resistance before breaking out significantly to $140 and above.

Key Resistance Levels: $116.9, $126.3, $140

Key Support Levels: $107.5, $100, $90

  • Spot Price: $108.6
  • Trend: Bullish
  • 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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Image Source: rimidolove/123RF // Image Effects by Colorcinch

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