Share:
  • Solana price is trading inside a symmetrical triangle with liquidity resting on either side of it.
  • Although SOL came close to breaking out, it was rejected and pushed into two barriers, where it is likely to consolidate.
  • A daily candlestick close below $38.22 will trigger a bearish breakout to $31.66. 

Solana price shows a slow takeover of the bears after bulls managed to move the asset higher. Due to Bitcoin’s sudden sell-off, altcoins, including SOL, have taken a major hit. If the momentum does not sway in a particular direction, the so-called “Ethereum-killer” will possibly be stuck ranging within two barriers.

Solana price oscillates with no directional bias

Solana price has produced higher lows and lower highs, indicating a massive squeeze for SOL. However, the recent attempt to move higher set a lower high at $43.77 on August 8. Currently, the altcoin is trading between the $44.37 and $38.22 barriers.

Although there might be an attempt to partially recover the recent losses, the market is currently skewed toward bears. Therefore, investors should prepare for a Solana price consolidation between the aforementioned barriers followed by a breakdown of the $38.22 support level.

Doing this is likely to trigger a 17% crash in SOL, allowing it to revisit the $31.66 foothold. While this level will serve as support, there might be a sweep due to the liquidity resting below it. In a dire case, where this level is broken, Solana price might revisit the $24.52 weekly support level and, in the process, collect the sell-stop liquidity resting below the wicks formed between June 13 and June 19.

SOL/USDT 1-day chart

SOL/USDT 1-day chart

On the other hand, if Solana price manages to bounce off the $38.22 support level and breach the $47.43 hurdle, it will indicate a breakout and invalidate the bullish thesis. In such a case, SOL price could attempt to collect the buy-stop liquidity resting above the wicks formed between May 15 and May 31. 

This development could see Solana price retest and perhaps sweep the $59.31 resistance level.

 


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.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Dogecoin Price Prediction: DOGE refuses to let WIF have all the fun

Dogecoin Price Prediction: DOGE refuses to let WIF have all the fun

Dogecoin is leading meme coins north, even though Dogwifhat is outperforming it. With DOGE defending the gains, the upside potential remains alive and the meme coin could reclaim its March 2 peak. If Dogecoin price loses the $0.1356 support, it could weaken the bullish thesis, paving the way for an extended fall.

More Dogecoin News

Celo price confirms breakout after CELO L2 migration details

Celo price confirms breakout after CELO L2 migration details

Celo price broke out 15% on March 1, when the network executed its migration to Layer 2. CELO continues to hold above $1.1172, increasing the odds for a further upside. A break and close below $1.1022 would produce a lower low, provoking a continued drop.

More Celo News

Ethereum Price Prediction: The long game could see ETH climb 30%

Ethereum Price Prediction: The long game could see ETH climb 30%

Ethereum price has defended its range low of $884.51 since early 2021 while the $4,485.32 peak capped the upside. If ETH manages to close above $3,602.43, it could catalyze a continuation to the January 2021 peak. A break and close below the midrange of the channel at $2,684.92 would invalidate the bullish thesis.

More Ethereum News

GMX price could make a 50% climb as GMX’s daily chart is governed by a bullish pattern

GMX price could make a 50% climb as GMX’s daily chart is governed by a bullish pattern

GMX price has formed an inverse head and shoulder pattern on the daily timeframe. GMX could make a 49% climb if the price manages a daily candlestick close above $59.64 bullish. A break and close below $50.00 would invalidate the bullish thesis.

More GMX News

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. 

Read full analysis

BTC

ETH

XRP