Market Analysis

SOLANA PRICE ANALYSIS & PREDICTION (February 6) – SOL Remains Bullish Despite A Week Drop, Can It Reclaim This Psychological Level?

Solana has turned slightly weak since it rejected the $106 level in late January, although the trend remains bullish on the higher timeframe. A bounce above last month’s low could fuel an increase. Otherwise, it may break down.

The recent indecisiveness in the market has made Solana’s next move unpredictable. The price has been fluctuating around the $100 psychological level with no actual direction at the time of writing.

However, the price is still looking strong on the higher timeframe as it continues to trade in a bullish zone. There’s still hope for a rebound if the bulls react strongly to the price above $80, marked as last month’s low. 

Even if a rebound occurs, Sol must retake previous resistance levels to activate a fresh rally. Looking at the price heatmap since late December, the bears have been more dominant. In fact, they appeared slowly stepping back from a short break.

A drop below last month’s low could lead to another sell-off toward $50, confirming a lower low and lower high formation on the daily chart.

The continuous drop in the daily volume indicator suggests a potential divergence in price. This indicates that more sell-off is likely to take place. Still, Sol is technically considered bullish from a short-term perspective. 

SOL Key Level To Watch

Source: Tradingview

There’s a close support level at $90. If the price drops below this support level, the next key support to watch for a decrease lies at the $80 level. Lower support levels to consider for a crack are $70 and $60.

If Sol climbs back above the psychological $100 level, it must reclaim last week’s $106 high before surging to the $110 and $116.9 resistance levels. The $126.3 level is the last resistance to watch for a breakup. 

Key Resistance Levels: $100, $110, $116.9

Key Support Levels: $90, $80, $70

  • Spot Price: $96
  • Trend: Bullish
  • Volatility: Low

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: alexandarilich/123RF // Image Effects by Colorcinch

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