- Solana (SOL) price faces significant selling pressure near $200, indicating a potential 10% to 20% correction ahead, driven by factors like Bitcoin’s bearish outlook and technical indicators like bearish divergence and the Momentum Reversal Index (MRI) potential sell signal.
- Support levels at $152 and $134 offer potential buying opportunities, but a breach below $100 could invalidate the bullish outlook, potentially leading to an 11% crash to revisit the $89 support level.
Solana (SOL) price has faced intense selling pressure around the $200 psychological level. Technicals hint at another 10% to 20% correction on the cards for SOL. Sidelined buyers could get a buying opportunity on the potential retest of $134.
Solana’s Recent Rollercoaster
Solana price has shot up 1022% since September 2023. The two main reasons for this mind-melting rally are Bitcoin’s bull run and the overselling of SOL due to its connection with the now-bankrupt crypto exchange FTX. Last week, Solana soared 39%, registering the highest weekly gain of 2024. But in the past five days, Solana price faced massive rejection around the $200 psychological level and is currently trading nearly 16% lower than the previous week’s closing level.
Factors Driving the Correction
This correction is potentially aided by various factors. Bitcoin’s bearish outlook is one such factor, as BTC is experiencing a downturn, leading to profit-taking across the market. Additionally, technical indicators like bearish divergence and the Momentum Reversal Index (MRI) potential sell signal are also contributing to the downward pressure on SOL.
Where Solana Might Find Support
Considering the bullish market conditions, a reversal is unlikely, suggesting SOL is in for a correction. Stable support levels where buyers might find Solana price attractive include the weekly foothold at $152 followed by $134. Ideally, a sweep of the $134 level would be the best place for accumulation, although the probability of this move occurring remains low given the extremely bullish outlook.
Outlook and Potential Scenarios
On the upside, if Solana price manages to flip the $200 psychological level prematurely, the chances of an uptrend continuation are high. However, if Bitcoin price continues to shed, SOL could follow suit. A decisive weekly candlestick close below $134 would suggest a potential shift in trend, attracting weak hands to sell their holdings. If the panic sell-off pushes Solana price to produce a weekly close below $100, it would invalidate the bullish outlook, potentially leading to a 11% crash and a revisit of the $89 support level.
Solana’s price trajectory in the coming days hinges on various factors, including Bitcoin’s performance and technical indicators. While a further correction of 10% to 20% is possible, buyers might find opportunities at key support levels such as $134. However, a breach of critical support levels could signal a more significant shift in trend. Investors should closely monitor these developments to make informed decisions in the volatile crypto market.
