Published 1 hour ago
Solana price prediction: a bearish breakdown of the month-long range setup puts Solana’s price in a longer correction. Thus, losing the $12.75 support may intensify the ongoing selling pressure and push the prices back to the last swing low of $11.35. But will this support replenish the bullish momentum or encourage prolonged downfall?
Key points
- The $12.75 breakdown sets Solana coin price for a 7.5% downfall.
- An evident bullish divergence in the daily-RSI slope indicates a potential bullish reversal from $11.35
- The 24-hour trading volume in the Solana coin is $192 Million, indicating a 0.3% gain.
Source-Tradingview
For nearly a month, the Solana price wobbled in a fixed range from $15 to $12.75. This long consolidation was supposed to bolster the coin price for higher recovery once it breached the overhead resistance of $15.
However, the recent sell-off in the crypto market triggered by FUD surrounding Binance and hearsay for US Fed to tighten interest rate hikes caused significant outflow in Solana coin. As a result, the coin price ended the range setup in the seller’s favor with a breakdown of $12.75 support.
On December 16th, the Solana price breached the $12.75 support with increasing volume, indicating the sellers are aiming to visit lower levels. However, with the ongoing uncertainty in the crypto market, this altcoin is stuck in a retest phase.
Today, the SOL price trades at $12.25 with an intraday gain of 2.35% Furthermore, the higher price rejection candle attached to this daily candle indicates the intense selling pressure from above.
If this selling pressure persists, the altcoin should eventually drop 7.5% lower to pierce the $11.35 support.
Conversely, if the recent selling pressure was solely due to panic selling in the market, the Solana price should rebound from the $11.35 mark.
Technical indicator
Relative strength index: Despite the sideways price action, the higher high movement in the daily RSI slope indicates growth in underlying bullishness and a higher possibility for price reversal.
EMA’s: the large gap between the crucial EMAs(20, 50, 100, and 200) indicates the overall trend is bearish.
- Resistance level- $12.7 and $15
- Support levels- $11.35 and $10
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
