Solana remained in a range bound following a temporal hold above two-week support. The price is still within the bulls’ radar. A sharp nosedive at this support should trigger a big down surge.
By market cap, the 11th best-performing cryptocurrency seems to have found support above the $20 mark after experiencing a consistent fallout for two weeks.
Yesterday makes it the third time the price tested this support level as a lower range. However, it could bounce back to the upper range high of $26 if the price actions remain within a range. But if we consider the negative sentiments surrounding the crypto space lately, SOL could flip this support soon.
This support looks temporal and weak from a technical perspective. The daily chart setups show that a big potential drop is imminent.
Let’s take into consideration the triple-bottom formation on the same chart, the price could rally heavily above the range if the bullish formation comes into play. Such a scenario will confirm a continuation of the short-term bullish we saw earlier this year.
But at the moment, Solana is still bearish from a long-term perspective. It remains trapped and still looking for a way out of the channel that has been suppressing buying actions since May 2022. A fall below the current support level will position the trend in a more bearish condition.
Solana’s Key Level To Watch
Source: Tradingview
SOL is holding resistance levels at $22.3 and $24.5 on the lower time frame. The major resistance level for a range breakout lies at $26.7. The target resistance levels to watch above it are $30 and $33.5.
A breakdown at the mentioned support level could dip the price to hidden support of $17.7 before rolling over to $15.1. Lower support levels to keep in mind are $13 and $11 in case of more drops.
Key Resistance Levels: $22.3, $24.5, $26.7
Key Support Levels: $20, $17.7, $15.1
- Spot Price: $21.3
- 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.
Image Source: vasilyrosca/123RF // Image Effects by Colorcinch
