Since reaching an all-time high of $259.90 on November 6, Solana has been declining. It has been following a declining resistance line throughout the decline, which was most recently validated on March 2.
Solana Bulls May Push Price Above $100
So far, the price has dropped to $75.35 on February 2. The subsequent bounce confirmed the $73 area as support. This is a horizontal support area as well as the 0.786 Fib retracement support level.
SOL is currently trading at a 66% decrease from its all-time high.
Solana’s price is on the verge of completing one of the most significant percentage decreases since its all-time high in November 2021.
A descending triangle pattern may be seen in the price activity of Solana (SOL). The altcoin reversed course from the falling trendline ($105) on March 2nd, plunging to the $80 neckline. For more over a month, the purchasers have firmly guarded this support, preventing the sellers from extending any further losses.
SOL/USD will hit support at $80. Source: TradingView
With an evening star pattern, the altcoin jumps off its $80 support today, letting traders to build up another comeback. Furthermore, when the coin price approaches the top of the bearish pattern, a significant breakout may be imminent.
If Solana is to avoid a further value decline, it must rise to the $102 level. To reach to this level, it must first break through the 50% Fibonacci retracement at $92 and then close above $100.
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If buyers can push SOL prices to $102, the coin will have broken through a key resistance level and will be poised for a powerful comeback. If prices continue to rise, the token will reach $111, but if no significant market support emerges, the token will be unable to move any further.
Since Ukraine indicated that it was no longer interested in joining NATO, the bitcoin market has turned positive. Due to expectations that the war between Russia and Ukraine may finish, the positive streak could continue. As a result, SOL has a good chance of recovering to $150 or higher.
Bears Await
Solana may turn bearish on the market, weakening buyer support. The market has been in a state of flux during the last few weeks. As one trend has yet to emerge and take shape. As a result, there’s a chance the present upswing could be broken. Solana may drop to historical lows.
If Solana falls below $85, it may test the lower support levels. If the token continues to fall, the final support level of $80 could be tested.
If it breaks through this support level, a sharp drop in pricing is likely, with the $50 level being tested soon. This might push SOL to new lows. Such lows may entice traders looking to profit from such a significant drop.
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Featured image from Pixabay, chart from TradingView.com