The overall cryptocurrency market trades bearishly, with the majority of the altcoins recording losses on the 24-hour chart. Top 3 cryptocurrencies Bitcoin, Ethereum, and Cardano price lost more than 3 percent. Solana after shedding 15 percent of its value on Friday is slowly bouncing back.
SOL Price Enters Consolidation Phase
In the past 24 hours, Solana witnessed Major corrections as the token hit the lows at $168.69 on Friday. However, during the early Asian trading hours, SOL Price showed some recovery trading at $183
Despite emerging as the biggest gainer as per the weekly time frame, Solana’s daily trading volume dwindled to $9.18 billion. The recent bearish movement has made SOL/USD plunged from $221 to $166.
The technical indicator Relative Strength Index is sliding towards the 9-day moving average as the trend is likely to favor bears.
As per the 4-hour period, SOL/USD has retraced to the $180 region, but the bulls are now attempting to break out of $198.
As per the above chart, For this week we give a higher probability of the price testing the support area marked on the chart. However, if the orange trendline is broken and consolidation happens in that area we could see a continuation to the upside with a new all-time high in the making.
However, the support levels at $140, $130, and $120 could hold up if the selling pressure continues. Meanwhile, the price action is bearishly on the daily chart after a sell-off that occurs after touching the daily high of $198 resistance level. In case the altcoin breaches above the resistance level it may test the previous resistance again at $220, $230, and $240 respectively.
Overall, the technicals indicate that the SOL price will consolidate within $200 for some time frame before reaching ATH. On the other hand, if the bearish pressure occurs the altcoin will remain within the $175 support or correct lower in case of extended bearish sentiment.