Following latest breakout in Bitcoin’s price, some altcoins recovered well from their recent lows, with Solana rising by 5% today. It encountered resistance and quickly washed gain within a blink.
Solana took a small break in bullish last week after witnessing a massive price explosion in the preceding weeks. This culminated into small weakness in price as it ended the year 2023 in a red.
It found support and bounced back strongly above $100 while trading level changes to the upside. It showed strength and pushed near the $117 level today. It quickly lost steam and failed to breakout due to a sudden rejection.
Although the price remains strong on the weekly. If Sol retakes and overcomes its previous high of $126.3, we can expect more gains to surface in the future. The April 2022 resistance would be the next buying target to watch by then.
If that fails to happen as result of continuous rejections, the price may roll back to the recent bounce level of $97.1 to form a double-top pattern. A breakdown from there should confirm a retracement from a short-term perspective
However, looking at the market structure on the daily chart, Sol is due for a correction from a technical perspective. Due to the current positive sentiments across the market, it may remain strong for a while before breaking down.
SOL’s Key Level To Watch
Source: Tradingview
In the middle of the surge, Sol just faced rejection at the $116.9 level. A cross above this level could propel buying to the previous resistance of $126.3 before surging to $130 and $143.4 – tested in April 2022.
Following latest bearish interception, Sol may roll back to $100 and $97. The $90 and $80 levels are next support to watch in case of a breakdown.
Key Resistance Levels: $116.9, $130, $143.4
Key Support Levels: $100, $90, $80
- Spot Price: $108
- 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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