Shorting Solana price at $12 may not be a good decision because…
- Solana price is more bearish than other altcoins, as it shed roughly 9% in under two hours.
- Due to excessive selling, sidelined buyers could trigger a 25% run-up to $16.45.
- Invalidation of the bullish thesis will occur if SOL shatters the $11.35 foothold and flips it into a resistance level.
Solana price has been affected, although not equally but almost as significantly as FTT's price following FTX and Alameda's collapse. The cryptocurrency is now nearing a crucial price level which has been upholding the price from drawdown for days now. Losing this could push SOL down to 21-month lows.
Solana price about to take a leap
Solana price took a major hit declining by over 63% in three days following FTX's collapse on November 6. The situation for the altcoin has not improved despite multiple attempts at recovery.
Currently trading at $13.25 and is in the oversold area as seen in the Relative Strength Index (RSI). Due to its position, the altcoin could witness increased buying pressure for sidelined buyers looking to accumulate SOL at a discount.
Such a development could initiate a buying spree, pushing Solana price to retest the immediate resistance level at $16.45. If the altcoin flips this blockade into a foothold, investors can expect an extension of the rally to revisit $18.81. In total, this move would constitute a 42% gain for traders.
SOLUSD 8-hour chart
On the contrary, the broader market exudes bearishness and could sabotage the bulls’ plans. A spike in selling pressure that pushes Solana price below the immediate support level at $12.80 could knock SOL toward the $11.35 critical support barrier.
A breakdown of this significant foothold will create a lower low and invalidate the bullish thesis for Solana price. The 21-month low at $7.77 is the only support level that will sustain this spike in selling pressure for SOL and give buyers a second chance at recovery.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
