• Thu. Apr 18th, 2024

Solana (SOL) Weakens, Suggesting a 13% Fall

Dec 28, 2021
  • SOL price formed a toppish signal, suggesting a cautious short-term picture for Solana.
  • The alt might suffer a 13% crash if it fails to secure dependable support.
  • The ETH-Killer should maintain beyond $161 for bulls to support the prevailing upward trend.

Solana’s (SOL) price has met a bearish sign that indicates the altcoin might encounter correction before continuing the upside journey. The ETH competitor might see a 13% drop to the crucial support trend-line near $161 before bulls contemplate a comeback.

SOL Price Weakens

The twelve-hour chart shows Solana formed an ascending parallel pattern, suggesting uptrends. Nevertheless, the top gesture from the Momentum Reversal Indicator has been showcased, indicating an imminent reversal for the alternative coin.

The alt’s first defense line stood at $187, a level where 200 12hr Simple Moving Average and 21 12hr SMA correspond. Solana will secure another foothold around the 50 12hr Simple Moving Average around $183.

Additional support will appear around the Momentum Reversal Indicators support at $176 before the SOL price plummets lower to 78.6% FIB retracement mark of $172. If the coin fails to maintain the mentioned defense lines, the ETH-killer might slide lower, touching the prevailing chart pattern’s lower boundary at $161, where 11 December lows sit.

If selling pressure persists, bearishness will continue domination. That can translate to further drops for Solana, tagging the 10 October peak at $152.

A surge in buy order might see SOL tagging 61.8% FIB retracement area of $190, then 100 12Hr Simple Moving Average at $203, the level intersecting with 50% retracement mark. Surging beyond the level mentioned earlier will see Solana’s rebirth, and the asset might rise toward the primary technical pattern’s middle border at $222. However, the alt will encounter a hurdle at 38.2% FIB retracement at $216 before realizing the upward target.

Meanwhile, the weak price trends in the crypto space might support the downward narrative for SOL. Bitcoin failed to initiate a steady move past $50K as it hovers near $49,220 at this writing. However, analysts believe the retracement will form a base for the upcoming bullish run. Nevertheless, let’s see what will happen next. Stay tuned.

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