Solana’s bearish trajectory is still intact from a short-term perspective. But it found support this month and bounced off to test a key resistance. It may resume mid-term bullish if the price breaks through this important resistance.
SOL entered the third quarter of the year on positive actions, but the momentum was quickly suspended to negative after testing $32 at the upper boundary of an ascending channel. That rejection later led to a severe selling for two months.
Earlier this month, it found support at the channel’s lower boundary and bounced back to test an important resistance area at $20. This bounce brought a small relief in the market. Unfortunately, the resistance level was rejected and the price pulled back a bit.
The price bounced back this week and continued to face rejection at the mentioned resistance area. If SOL repeats the past months’ pattern from the channel’s lower boundary, we should expect a strong buy to the upper boundary after flipping the important resistance.
Nonetheless, it is essential to note that Sol is still in a downward range on the current daily and weekly charts. A dip below this month’s support could activate a big crackdown to $10.
But with the latest positive sentiments surrounding the global crypto market, the buyers are more likely to have an upper hand than the sellers. So far, it has charted over 4% gains in the past week.
SOL’s Key Level To Watch
As the price stalled under the $20.5 level for the past few days, an increase above it could propel buying towards $22 and $24 before advancing higher.
Currently, the price is trading well above a weekly support of $18.75. A crack below the channel could plunge the price to $17.43 and $15.6. June’s low is the next possible support to consider for a drop.
Key Resistance Levels: $20.5, $22, $24
Key Support Levels: $18.75, $17.43, $15.6
- Spot Price: $20.1
- 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.