Solana Price Analysis: SOL in a Bearish Movement to $30

Source : coinquora.com

  • The price of SOL attempted a recovery rally following days of consolidation.
  • The buying pressure in the rally was exhausted and a correction took place.
  • The price of SOL is at risk of dropping to $30.

The price of Solana (SOL) attempted a recovery rally following days of consolidation between a support and resistance level. This move was meant to be a hail mary for bulls. However, the buying pressure was soon exhausted, leading to a lower high and a correction. Now, this correction could worsen SOL’s current condition.

Since May 13, SOL’s price action has remained in the bounds of the $41.25 support level and the $55.97 hurdle. Even though there were several moves made, the price activity of SOL remained in this range.

The most recent SOL price movement was the retest of the $41.25 barrier, which resulted in a 20% ascent that failed to push through the $47.34 200 Simple Moving Average (SMA) on the 4-hour chart for SOL/USDT.

In a cascading effect, SOL crashed by 21% to shatter the $41.25 support level. This event flipped SOL into a bearish cycle. While a failure to recover above the mentioned hurdle would threaten the gains of SOL’s price, investors need to closely monitor the $37.37 price level.

A bearish onslaught may be on the cards for SOL. (Source: TradingView)

This support level can make or break the situation for SOL bulls, as a breach of this level will be a confirmation of a bearish onslaught for SOL investors and will knock the price of SOL further down by 15%. The knock-on SOL’s price will see it retest the $31.59 barrier. Bears may also extend this potential downtrend to retest $30.

Although SOL investors find themselves in a gloomy situation, a 4-hour candlestick close above the 200 SMA line at $47.34 will lead to a higher high and invalidate the bearish thesis.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.

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