- Solana price has dropped roughly 26% since a sweep of the $44.37 hurdle on July 19.
- This correction is likely to continue its descent and revisit the $31.66 and $24.52 support levels.
- A sudden spike in buying pressure that flips the $47.43 resistance barrier into a support floor will invalidate the bearish outlook.
Solana price shows a lack of strength after piercing an important resistance barrier, denoting an overwhelming increase in sellers. This development has pushed Solana SOL to trigger a full-blow reversal that has pushed it down to where it currently stands.
Solana price plans its next move
Solana price swept the $44.37 hurdle on July 19 after rallying 49% in under a week. This massive move was impressive, but it failed to flip a crucial hurdle at $47.43 into a support floor. As a result of its incapacity and the surge in investors booking profits, SOL started reversing its trend.
Interestingly there are a few levels where liquidity still rests, and depending on the market’s bias, SOL will probably visit these barriers before any chance of a turnaround.
Since SOL is crashing, let’s take a look at the liquidity pools to the downside first.
$31.66 is a support level Solana price has retested three times since June 20 without any massive dips or sweeps below it. Hence, this is the first and the nearest level that market makers might attempt to steer the SOL price to.
Furthermore, the swing lows formed since June 13 were all higher lows with no liquidity runs below them. As a result, a move to the lowest swing low at $25.71 is where SOL might head next. Interestingly, this level is just above a weekly support level at $24.52, which makes this barrier a stable one and worthy of catalyzing a reversal.
Considering the aforementioned liquidity levels, investors can expect a 10% downswing to sweep the $31.66 barrier and a 26% downswing to sweep the $24.52 foothold.
SOL/USDT 4-hour chart
Despite the bearish outlook, a sufficient spike in buying pressure that pushes Solana price to produce a daily candlestick close above $47.43 could reverse the trend. This move will create a higher high and invalidate the bearish thesis.
Such a development could further see Solana price attempt to retest the $50 psychological level.
However, a closer look at the price action reveals that the buy-stop liquidity is resting from roughly $47.43 to $59.31. Hence, the upside for SOL extends up to roughly $60, especially if SOL bulls can manage to overcome the $47.43 hurdle.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
Binance CEO calls CFTC suit “disappointing” as district court halts Voyager $1 billion sale to Binance.US
Voyager’s deal with Binance’s United States entity, Binance.US, faced another hurdle on March 27, the same day that the Commodity Futures Trading Commission (CFTC) went after the crypto exchange. This is the second time in the span of a month that Voyager’s deal has been objected against by the government.
90% of Ethereum supply leaves exchanges as regulators struggle to classify ETH as Security or Commodity
Ethereum is known not only as the second-biggest cryptocurrency but also as the second-generation cryptocurrency. The blockchain not only brought Decentralized Finance (DeFi) to the crypto space but also framed a target on its back following its Proof of Stake transition plan.
This is how EOS holders responded to the network's EVM testnet launch, what to expect this week
The first milestone on the EOS Network Foundation’s roadmap, the completion of the EOS EVM (Ethereum Virtual Machine) code, was achieved on March 22, starting the countdown to the launch of the EOS testnet. Well, it is finally here and the community is elated as it brings them closer to the mainnet release on April 14.
XRP price recovers above $0.44 as court ruling approaches, will Ripple win against the SEC?
XRP price has kept its momentum, flashing green on the one-day timeframe as the countdown to the Ripple vs SEC lawsuit continues. The remittance token is moving in tandem with our prediction last week, soaring by a significant margin to secure a place among the best-performing cryptocurrencies on a one-week timeframe.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?
Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.