Solana Price Analysis: Sellers In Control Hints $SOL Price could Revist $20

Solana Price Analysis: The fast-recovering Solana coin price has recently faced a sharp reversal from the $32 resistance. Within a fortnight, the 9th largest cryptocurrency tumbled 27.9% and reached the current trading price of $23.34. This correction phase is backed by low-volume activity indicating a temporary pullback as fewer market participants are interested in short positions. How long before the SOL price resumes its prevailing recovery?

Also Read: Solana Price Analysis: Here’s Why $SOL Price Recovery could Surpass $32

Solana Price Daily Chart

• A bearish breakout from a lower support trendline hints the SOL price is at risk of a 13.5% fall
• Several technical supports accumulated near the $22.3 horizontal level create a strong demand zone.
• The 24-hour trading volume on the Solana coin is $484.5 Million, indicating a 25% gain.

Source-Tradingview

In the four-time frame chart, the Solana price shows the ongoing correction shapes into a bullish continuation pattern known as a pennant. This chart setup usually offers a brief resting period to buyers before recuperating exhausted bullish momentum. However, within the intraday loss of 5.61%, the sellers gave a bearish breakdown from the support trendline of this pattern.

The bearish outcome from the bullish pattern is a strong selling signal, indicating the Solana price is poised for a longer correction. If the coin price manages to sustain below the breached support, the sellers would obtain a new resistance to pressurize buyers.

The post breakdown could plunge the price back to $22.5, followed by $20 and $18.5.

Will Solana Price Plunge to $20

With the overall trend bullish, the Solana price should resume the prior recovery once buyers obtain suitable support at a recently reclaimed level. As per the Fibonacci retracement level, the $22.3 horizontal aligned with 50% and $20 level 61.8% FIB level could offer a solid springboard. The anticipated recovery would give its first signal with a bullish breakout of the overhead trendline

• Fibonacci retrenchment level: A correction to $22.2 support(50% FIB) would be considered healthy to prolong the bull trend.
• Exponential moving average: The SOL price moving above 100-and200-day EMA indicate the market sentiment remains positive