Following last week’s breakdown from a six-month support trendline, Sol found support and recovered quickly but failed to push above it. Due to multiple rejections, it is now holding this trendline as resistance.
Sol’s trading level has changed significantly since last week as it failed to respect an ascending trendline that served as support for six months. The breakdown triggered panic and fear amongst traders and the price fell slightly under $170.
Fortunately, the bulls intercepted the move at $169 and quickly pushed the price back, but the $193 level posed a threat, and the buying pressure halted due to low volume. Multiple attempts to break through this critical level have been proven abortive, although there’s still hope.
Despite that, Sol’s market structure is still considered bullish on the macro level. A successful push above this critical level could trigger a major recovery to the top before rallying hard to a new high.
But now that Sol is showing signs of weakness, we may need to consider a downward movement to continue the major correction initiated from the peak of $264 last November. A drop below the weekly low may cause more havoc. For now, it is still trading in a tight range.
SOL’s Key Level To Watch
Source: Tradingview
The key potential support for drops right now is $180 and $169. A crack below it should confirm more downplay towards the $155 level.
If by any chance the bulls regroup back with a surge above the $193 level, the immediate resistance level to watch would be $202, followed by $223. Another resistance level to watch is $247 until the price breaks out of the key $264 resistance.
Key Resistance Levels: $193, $202, $223
Key Support Levels: $180, $169, $155
- Spot Price: $186
- 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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