Solana Price Analysis: Post-Retest Fall May Sink SOL Price To $20
Last week’s sell-off in the crypto market pulled the Solana(SOL) price below the prior lower low support of $40. The breakdown tumbled the altcoin by 22% as it reached near the $26 mark. However, the demand pressure near the $26 mark could trigger a minor pullback to the breached resistance, providing a short entry opportunity.
Key points
- The SOL chart shows lower price rejection candles near the $26 mark.
- The 20 DMA strengthens the resistance power of the descending trendline
- The 24-hour trading volume in the Solana coin is $1.7 Billion, indicating an a1.98% gain
Source-Tradingview
The SOL/USDT pair has witnessed a steep fall after it turned from $143.3 resistance in April. The downfall slumped the altcoin 69% lower, hitting the $40 psychological level. However, this support temporarily stalled the selling pressure, resulting in a slow yet steady decline.
Thus, responding to a descending trendline, the SOL price slumped back to the May low support of $40 Moreover, the recent sell-off in the crypto market struck the final push to break the $40 barrier.
Furthermore, after a few follow-up candles, the altcoin witnessed demand pressure near the $27-26 mark, indicating the price might revert to retest the breached support. The potential pullback would hit a strong supply zone formed by the aligned resistance level of $40, descending trendline, and 20-day EMA.
If the selling pressure persists, the SOL price will slump by 27%, down to the $20 psychological level.
Technical indicator
The rising MACD indicator slopes despite the falling price indicates weakness in the bearish momentum. This divergence could assist buyers in a bullish breakout from descending triangles.
The downsloping crucial EMAs(20, 50, 100, and 20) reflect a strong bear market as SOL price faces constant resistance from the fast-moving 20-day EMA. Thus, even if a potential rally simultaneously breaches the descending trendline and 20-day, the other EMAs are expected to limit bullish growth.
- Resistance level- $35 and $44.3
- Support levels- $20 and $16.78
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