The past week has been tough for many altcoins, including Sol, which is now consolidating under a key level due to a lack of interest. While the correction still looks intact on the day, more drops can be expected.
During the last leg down that led to a broad price correction in the short term, Sol found support above a three-month trendline and recovered but unfortunately failed to resume an uptrend due to low buying commitment.
Though the bulls tried to step back in action as there was not enough volume to bring them back in control. The daily supply level still appears high, and as a result, we can expect more drag-downs after distribution. If that fails to play, it will continue to trade flat until a surge occurs.
Looking back from where the price started to drop in November, Sol has posted a notable loss as it fell into the $170 range, with a sharp bounce. This bounce has brought relief as it subjects to a sideways movement.
Adjusting to the lower timeframe, Sol is still forming a lower low and lower high pattern on the 4-hour chart. This bearish pattern suggests that the correction phase is still active. It may create a new lower low if the support trendline breaks down.
Meanwhile, a change in the bearish trend can be expected once Sol starts to make a new high. Amid the latest correction, the general market outlook is still considered bullish on a macro level.
SOL’s Key Level To Watch
Source: Tradingview
Sol is currently in the middle of consolidation. A breakdown from the current trading level could roll the price back to $176, located under the trendline. Other support levels to consider for drops are $155 and $141.
Resuming bullish, the price must climb back above the $202 and $227 resistance levels. A breakthrough $247 to the $264 resistance should fuel a huge rally to a new high.
Key Resistance Levels: $202, $227, $247
Key Support Levels: $176, $155, $141
- Spot Price: $190
- Trend: Bearish
- 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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