Key Takeaways:
- SOL price is down over 10% and trading below the $23.50 support.
- It traded below a key bullish trend line with support at $22.60 on the daily chart.
- Today, Bitcoin and Ethereum dropped below $26,000 and $1,700, respectively.
NEW DELHI (CoinChapter.com) — Solana’s SOL is down 10% and trading below key support. The price could continue lower if it breaks the $20.00 support zone.
Solana (SOL) Price Drops Below Support
After a strong increase, SOL price struggled near the $32.50 zone against the US Dollar. The price started a downside correction below the $30.00 support zone. The bears were able to push the price below the $28.00 support.
Today, there was a strong decline in the crypto market, pushing Bitcoin, Ethereum, and altcoins lower. SOL also declined over 10%, sharply below the $23.50 support. The price traded below a key bullish trend line with support at $22.60 on the daily chart.
There was a clear move below the 50% Fib retracement level of the main increase from the $13.02 swing low to the $32.50 high.
SOL trades below $22.00 and the 50-day simple moving average (blue). The bulls are now protecting the $20.00 support zone. It is close to the 61.8% Fib retracement level of the main increase from the $13.02 swing low to the $32.50 high.
The current price action suggests that the recent breakdown could lower the price. The first major support is near the $20.00 level, below which the price could lower.
The next major support is near the $17.60 level. If the price fails to stay above the $17.60 support, a sharp move could be toward $15.00. Any more losses may open the doors for a drop toward the $13.00 support.
Is Recovery Possible?
Conversely, the price might stay above $20.00 and attempt a fresh increase. On the upside, SOL could face resistance near the $22.60 level. The next major resistance is near the $23.00 level and the 50-day simple moving average (blue).
A successful daily close above the $23.00 resistance could increase the price. The next key resistance is near the $25.60 zone. If there is a clear move above $25.60, Solana could rise toward the $28.50 resistance zone.
Overall, the SOL price is showing bearish signs below $22.60. If the bears remain in action, more losses could be below the $20.00 support. Conversely, the price might start a recovery wave toward the $23.00 level.
