Solana has just reacted to a key level due to a current increase in Bitcoin’s price. Though the price is still looking weak in the higher time frame. After collapsing beneath $26, it has lost over 50% of its value in the past seven days of trading.
After the price corrected to around $18.83 last week, Solana initiated another sale, and it started to drop again. Compared to last week’s collapse, the last four daily candles indicate a low sell volume in the market as volatility shrinks.
Two things can be involved here: Solana is likely preparing for another big collapse or exhaustion of the existing (bearish) trend. It’s important to wait to confirm the next price movement.
Meanwhile, Solana fell to a daily low of $12.07, but the price quickly bounced a bit (to $14.3) after it found support around the mentioned low. This daily low technically corresponds with the March 2021 low of $12. It’s likely to hold.
However, the suspension of the sell actions should not be considered a buy signal – a possible trap.
The whole setup still appears bearish on the current daily chart, as there’s no strong sign of bulls in the market yet. A lower price should be expected if the crypto continues to dip.
Solana Price Analysis (SOLUSDT) – Daily Chart
Source: Tradingview
Solana now held $18.83 as a resistance level. A recovery above this resistance level should send the price to $23.3. In case of a deeper correction, the resistance level to keep in mind is $26, a significant break level on November 8.
Inversely, if Solana continues to provide a discount and the price plunges below the $12 level, the immediate support level to look out for is $9.3.
The $7.6 support is also an important level to watch in case of a further dip. If all these supports fail to suppress pressure, there’s crucial support at $5.
Key Resistance Levels: $18.83, $23.3, $26
Key Support Levels: $12, $9.3, $7.6
- Spot Price: $14.4
- Trend: Bearish
- 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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