Altcoin

Solana (SOL) Price At Crucial Juncture, Can There Be Sharp Drop To $20

Solana (SOL) Price At Crucial Juncture | Photo by Jim Wilson on Unsplash

Solana’s SOL price declined sharply after it broke the $30 support. The price is now consolidating above the main $27.40 support zone.

Solana (SOL) Price Takes Hit

After a steady increase, SOL failed to test the $40 resistance zone against the US Dollar. The price formed a high near the $38.82 level and started a fresh decline, similar to bitcoin and ethereum.

The price declined heavily below the $35 and $32 support levels. There was a clear move below a key bullish trend line with support near $32.00 on the daily chart. The price even traded below the $30 support and the 50-day simple moving average (blue).

Solana’s daily price chart | Source: SOLUSD on TradingView.com

The decline gained pace and the price even spiked below the key support at $27.40. A low is formed near $24.77 and the price is now consolidating losses.

It seems like the bulls are currently active near the all-important $27 support zone. The price is near the 23.6% Fib retracement level of the downward move from the $38.82 swing high to $24.77 low.

On the upside, an immediate resistance is near the $30.00 level. The next major resistance is near the $31.80 level and the 50-day simple moving average (blue). It is close to the 50% Fib retracement level of the downward move from the $38.82 swing high to $24.77 low.

A clear wave above the $31.80 level could increase the chances of a move above $33.50. The main breakout zone on the upside sits near the $35 zone. If there is no push above $30 or $31.80, the price might resume its decline. An initial support is near the $27.40 level.

The next major support is near $26.20. The main support sits near the last swing low or $25. A close below $25 may perhaps start a strong decline. In the stated case, the price might even dive below the $22 support.

Overall, SOL price is struggling to stay above the $27.40 support. If the bulls are able to protect the main $27.40 support, the price could start a decent increase towards $31.80 or even $33.50. Conversely, there might be a fresh decline below $25.

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