Solana Price Analysis: SOL Price Extended Correction May Soon Hit $32

Amidst the ongoing sell-off in the crypto market, the Solana (SOL) price reversed from the $45 resistance and triggered a minor retracement. The downfall has pierced immediate support of $38.4 and is poised to hit the prior higher low support of $32. But what if altcoin breached this support as well?

Key points

• SOL price may drop 10% before hitting the next significant support of $32
• The coin holders lose 20-and-50 EMA of the daily time frame chart
• The 24-hour trading volume in the Solana coin is $1.46 Billion, indicating an 11.3% gain

 Source-Tradingview

After the SOL/USDT pair bounced back from the $26 support on June 14th, the coin chart has displayed a steady growth of new higher highs and lows. This run-up marked $45 as the new local top and triggered a minor correction, indicating a pullback opportunity for traders.

However, as the US FED is preparing to raise interest rates on July 27th, the market witnessed high volatility, resulting in a deeper correction in the majority of cryptocurrencies. Thus, the SOL price faced the same fate and plugged 21.25% since last week.

Furthermore, this downfall has breached in-between support of $38.4, which may flip to a suitable resistance and accelerate the selling momentum. However, a minor retest to the breached support should validate this breakdown and offer a quick short-entry opportunity. 

The sustained selling will lead the SOL price 10% lower to hit the higher low support of $32. Moreover, if the sellers pull the altcoin below the aforementioned level, the prices may plummet to the $26 mark. 

Technical indicator

EMAs: The SOL price nosedived below the 20-and-50-day EMA offers an extra edge for bears. Moreover, these EMAs may flip to viable resistance and increase the number of hurdles a potential rally may face.

Vortex indicator: the VI+ and VI- slopes have drawn quite close to each other, indicating a loss of bullish momentum. In addition, a potential crossover among these may offer additional confirmation for sellers.

• Resistance level- $38 and $45
• Support levels- $32 and $26