SOL Price Chart: Key Points
Throughout the first half of August, Solana buyers struggled to maintain a position above the combined support level of $22.4 and the 50% Fibonacci retracement. However, in the latter part of the month, aggressive selling pressure emerged, causing a breakdown of the aforementioned support. This decline signals the continuation of the ongoing correction phase.
Here are the key points to consider:
- Solana price has experienced losses for four consecutive days.
- A breakdown below the $22.38 support level could trigger a 12% drop in price.
- The 24-hour trading volume for Solana coin is $486.5 million, indicating a 10% gain.
During the past five weeks, the Solana coin has been undergoing a correction phase. Starting from its peak at $32.13, prices have plummeted by 33.4%, reaching the current trading price of $21.39. This downward movement gained momentum on August 15th, driven by an intense sell-off in response to a dip in Bitcoin’s price.
The breakdown of SOL price from the $22.38 support level provides sellers with an additional opportunity to exert downward pressure on buyers. If selling pressure persists, the price could potentially drop by another 12% to reach the $18.8 mark.
However, when analyzing the daily chart, the candle pattern displays instances of lower price rejection, indicating the buyers’ efforts to stage a counterattack. This buying pressure could lead to a minor pullback, with a potential retest of the $22.38 level as a valid resistance to consider for short selling.
Will Solana Buyers Reverse the Current Trend?
The daily timeframe chart showcases a downsloping trendline that characterizes the ongoing correction phase. Sellers might exploit this dynamic resistance to sell during bullish bounces. Consequently, as long as this trendline remains unbroken, the downward correction may persist. Potential buyers should await a breakout above this trendline barrier to signal a potential trend change.
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