Market Analysis

SOLANA PRICE ANALYSIS & PREDICTION (November 8) – SOL Takes A Break After Breaking Out Of A Channel, Time For Correction? 

Last week saw Sol through a crucial breakout after staying in an ascending channel for a year. It retraced briefly, bounced back and is now losing steam on a daily. However, the price is still up by 2% today. 

After testing the upper boundary of its channel last week, Solana further increased and broke out to a high of $46.9. It encountered resistance there and retraced briefly downward. 

It found temporal support above the $40 level and resumed buying in the same week. it entered this week in a bullish mode and pushed near $45 yesterday. While the bulls attempt to retake last week’s high, they are currently facing hurdles at around $43. A push above it could activate more rallies. 

Failure to retake that high could result in a broader pullback to retest the channel’s upper boundary as support. If the price fails to bounce back from there, a broader pullback could plunge the asset back into the channel. But from the look of things, Sol is more likely to find support above the channel. 

The price remains strong on the weekly, but it is reaching an extremely overbought area on the daily chart after rallying by 100% in a month. So far, its mid-term bullish trajectory remains intact from a technical standpoint as correction seems underway.

SOL’s Key Level To Watch

Source: TradingView

Sol’s bulls are currently eyeing $44.8 and $46.9 (last week’s high). If they push through, the next level for a test would be $48.3 and maybe $50. Higher resistance levels to watch are $52 and $55. 

In case of a pullback, the $40 and $38.7 levels are the closest support to keep in mind. A broader correction could dip the price to $36 and $33, which is inside the channel.

Key Resistance Levels: $44.8, $46.9, $48.3

Key Support Levels: $40, $38.7, $36

  • Spot Price: $42.8
  • 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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Image Source: valedol/123RF // Image Effects by Colorcinch

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