Solana Price Drops, Testing New Support Level at $85
Solana price has experienced a decline, falling below the recent support level at $85. The altcoin, currently ranked fifth in the market with a market cap of $36 billion, has lost 3% in the past 24 hours, 14% in the last seven days, and 28% in the past month. It is currently trading at $83 during US trading hours on Tuesday.
Can Solana Price Recover from $80 Support?
Looking at the daily chart, two important indicators – the 20-day Exponential Moving Average (EMA) and the 50-day EMA – suggest a deteriorating technical structure for Solana price. The Relative Strength Index (RSI) is also dropping sharply towards oversold territory, indicating a bearish outlook and the possibility of further downtrend below $80.
Holding above the $80 support level is crucial for bulls to resume the uptrend. However, if this level is broken, it could lead to a longer bearish trend.
Waiting for Rebound and Breakout
Until the RSI reaches oversold levels below 30, there is still a risk of a prolonged correction. Traders should wait for Solana price to be accepted back into the upper half of the descending channel, with support from the middle boundary and the 50-day EMA at $87.
A break above the channel could signal a new bullish phase for Solana price, potentially leading to a breakout above $100. With successful retesting of $100 resistance, a recovery to $120 could occur quickly, setting the stage for a breakout to $200 and potentially reaching the all-time high at $260.
Hot Take: Solana Price Faces Resistance at $85, Recovery Uncertain
Solana price has encountered resistance at $85 and is currently testing a new support level. The technical indicators suggest a bearish outlook, with the possibility of further decline below $80. Bulls need to hold above this support level to resume the uptrend. Traders should wait for a rebound and confirmation of a breakout above the descending channel to consider bullish positions. FOMO-driven momentum could lead to a quick recovery if the $100 resistance is successfully retested. However, caution is advised as the overall market conditions and investor sentiment play a significant role in Solana’s price movement.
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