Solana Price Analysis: Will Market Sell-off Push $SOL Back to $100?

Solana Price Analysis: On Tuesday, the cryptocurrency market witnessed a major outflow following the lead of Bitcoin price correction to $60000. The sudden sell-off tumbled most of the top altcoins including Solana which recorded an 11% intraday loss. The falling price teasing a breakdown from multi-month support hints the sellers lead an extended correction trend in the near term. 

Also Read: Solana Vs Ethereum : Will Solana Take Over Ethereum By End of 2024 ?

Potential Reversal on the Horizon as SOL Hits 5-Month Support Level

In April, the layer 1 cryptocurrency Solana experienced a sharp downturn as market uncertainty intensified due to the Bitcoin Halving event The bearish downturn plummeted the SOL value from $204 to the current trading price of $122, registering a 40% loss.

An analysis of the daily chart shows the downward trend retesting an ascending trendline intact since late November 2023. The coin price rebounded several times from this support indicating an active accumulation from investors at market correction, a key signal of an established rally.

Moreover, the correction trend still wavering above the 50% Fibonacci retracement level indicates a healthy pullback which allows buyers to have an upper hand.

If the demand pressure at the aforementioned trendline is intact, the Solana price should prevent a breakdown below this support bolster for renewed recovery. Thus, the coin suitability above the support trendline will be a crucial factor for SOL holders and potential buyers in the coming weeks.

On a contrary note, if the altcoin breaks below the dynamic support with daily candle closing will favor sellers to lead an extended correction. The post-breakdown fall may tumble the asset to $98.5.

Technical Indicator

• Exponential Moving Average: A 20-day EMA slope which currently acts as a dynamic resistance will be among the initiated breakout if the SOL price witnessed renewed recovery.
• Relative Strength Indicator: The falling RSI slope heading close to oversold indicates a suitable buyer opportunity.