Solana Price Analysis: $36 Breakdown Teases SOL Price to Revisit $26

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Published 30 mins ago

Last week, the Solana (SOL) price witnessed a V-shaped recovery and rallied to the $42.6 mark. However, the supply pressure at this level triggered a pullback and plunged the coin price below the flipped support of $37. If selling pressure persists, the altcoin will continue the downward spiral to $26.

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Key points

  • The SOL price shows a decisive breakdown from the $37 support
  • The SOL price shows a 16.5% loss in the past four days
  • The 24-hour trading volume in the Solana coin is $1.32 Billion, indicating a 4.6% gain

SOL/USDT Chart

Source-Tradingview

From mid-May to June, the SOL/USDT pair shaped a steady downward approach under the influence of a descending trendline. The downfall reached a low of $26.06 but reverted immediately as the broader market started to recover.

Furthermore, sustained buying pierced the dynamic resistance trendline and reached the $43 mark. However, the SOL price turned from this resistance with an evening star candle and tumbled by 46%.

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The bearish reversal has recently breached the $37 flipped support, indicating the downward spiral would push the coin lower. A daily candlestick closing below $36 could intensify the current correction and dump the SOL price 28% down to the $26 mark.

However, if the coin fails to sustain the retest phase below the $36 mark, buyers may push the price higher to retest the $43 mark.

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Technical indicator

Similar to price action, the daily-RSI slope couldn’t sustain above the midline (50%), indicating weakness in the bullish momentum. The indicator may soon breach the 14-SMA line to bolster the ongoing selling.

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The recent price jump had managed to reclaim the fast-moving 20-day EMA. However, similar to $37 support, the SOL price failed to sustain above this EMA may encourage additional selling in the market.

  • Resistance level- $37 and $43
  • Support levels- $31 and $26

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From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

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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.

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