Amid this month’s meltdown, SOL saw a 15% drop and temporarily found support a few days ago. If this support holds firmly, it may resume mid-term bullish in the upcoming week. Buying volume is currently low.
Solana is still following a bullish sentiment on the monthly outlook as it continues to form a higher high and higher low pattern since the start of the year. All these price movements are well-captured in an ascending channel.
During last month’s recovery that hit the entire crypto market, the crypto found support at $17.43 after testing the channel’s lower boundary. It bounced back and increased by roughly 30% to the high of $24.8 three weeks later.
It encountered a resistance there and the positive actions stopped after failing to retake that high last week. The price corrected lower and later found a temporal support level at $21 in the mid-week. It increased by a dollar from that support and now trades at a minor resistance level of $22.
The buying volume is low to push the price higher at the moment. If the buying volume increases, we can expect a strong price movement toward the channel’s higher boundary, which stands as resistance for months.
In the opposite direction, the price must dip below the previous monthly low before considering a major bearish move for Sol. As of now, the buyers still have the upper hand.
SOL’s Key Level To Watch
Source: TradingView
While Sol faces resistance, a flip from the current trading level could rally the price to $24.8 before surging further to the $28 and $30 resistance levels. The key target level for buyers lies at $33.
If this week’s rebound level fails to hold as support, the lower levels to consider as support are $20.5 and $18.75. The $17.43 level would be the next support to watch for a big sell-off.
Key Resistance Levels: $24.8, $28, $30
Key Support Levels: $20.5, $18.75, $17.43
- Spot Price: $22
- 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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