Can Solana price catch a break from sellers?
- Solana price came close to retesting the $24.52 weekly support level after a 56% crash.
- As sellers take a break, SOL could bounce to the intermediate resistance level at $38.22.
- A daily candlestick close below $24.52 will invalidate the bullish thesis.
Solana price has been on a rollercoaster ride, mostly sliding lower for the better part of 2022 and the last quarter of 2021. With the bearish market conditions pausing, the chances of a minor relief rally seem likely.
Solana price ready to make a move
Solana price has crashed 82% since April 2 and 90% since November 2021. This massive downswing comprises multiple fallouts within the crypto community. Regardless of the fundamentals that caused this nosedive, SOL seems to have come in proximity to the weekly support level at $24.52.
Although Solana price did not retest it, the pause in selling seems to have triggered a 34% bounce. This move is trying to break out from the string of lower highs formed since May 16. If this trend continues, there is a good chance SOL retests the $38.22 hurdle.
In some cases, Solana price could wick to $40, bringing the total run-up to 17% from the current position at $34.27. Although unlikely, if the bullish recovery continues to unfold, SOL could make a run at the weekly resistance level at $47.43. This move, however, would constitute a 40% bounce.
SOL/USDT 1-day chart
Regardless, a daily candlestick close below $24.52 will create a lower low, suggesting the continuation of the downtrend, This move would also invalidate the bullish thesis for SOL and trigger a potential crash to $19.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
