Here’s how Solana price can prevent a crash to $5 or lower
- Solana price is on track to visit its head-and-shoulders target at $3.59.
- Investors should note that a rejection at the $13.84 hurdle could result in a 75% crash.
- A daily candlestick close above $13.84 could allow buyers to kick-start an uptrend and invalidate the bearish thesis.
Solana price has faced the brunt of the FTX fallout as it has been on a downtrend since November 2021. This non-stop nosedive escalated exactly a year later as the FTX exchange came under fire and went under. As a result, all the tokens associated with the company have been suffering an uber-bearish fate.
Solana price continues to lose support levels
Solana price dropped 95% since its all-time high at $259.90 in November 2021. This downtrend grew wings in the first week of November 2022 as the FTX exchange collapsed. As a result, SOL shed roughly 70% in the last three weeks.
Interestingly, this massive selloff coincides with the breakdown of the head-and-shoulders pattern reported on November 9. The 70% crash has pushed Solana price to flip the $13.84 support level into a resistance barrier.
SOL holders have one chance at recovery, and it is above $13.84, but rejection at this level would only catalyze a further down move. So, investors need to be cautious about Solana price as it could drop 62% before approaching a stable support level at $4.41.
The head-and-shoulders target at $3.59 is roughly 18% below $4.41, indicating that this area is where SOL could bottom.
SOL/USDT 1-week chart
On the other hand, if buyers band together and start accumulating SOL and push Solana price to flip the $13.84 hurdle, it would allow a chance of recovery. A consolidation above this level followed by a shift in market structure by producing a higher will invalidate the bearish thesis.
In such a case, Solana price could try to revisit the $24.54.
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.
