Share:
  • Solana price faces continued selling pressure against critical support zones.
  • Fundamentally, Solana’s network concerns have grown, and confidence has waned.
  • Increasingly likely that a test of $120 is coming up.

Solana price continues to face some strong technically and fundamentally bearish scenarios. In addition, concerns about Solana’s network stability and scalability remain. Those concerns continue to weigh in on the bearish price action ahead.

Solana price may drop to $120, a support zone it must hold, or a significant flash-crash could be coming

Solana price has one final support zone ahead that can keep SOL above water. The bottom of the bull flag/linear regression channel and the 38.2% Fibonacci retracement level share the support zone near $120.

The oscillators indicate some support should be expected between $120 and the present value area ($135). Mostly because of the Composite Index sitting at new all-time lows. The Relative Strength Index oscillator remains in bull market territory but is trading just below the first oversold level at 50 but above the second oversold level at 40.

It can not be overstated how vital it is to maintain the $120 value area for Solana. The volume profile between $120 and $50 is extremely thin to non-existent in some areas. Fragile areas in the volume profile act as a vacuum – when price action moves away from a high volume node and into a thing volume node, price gets ‘sucked’ through to the next high volume node.

SOL/USDT Weekly Ichimoku Kinko Hyo Chart

For Solana price, that means a drop below $120 could easily trigger a flash-crash towards the $50 value area – the next high volume node. Therefore, to invalidate and alleviate any current bearish outlook, SOL bulls will need to push for a weekly close above the Kijun-Sen at $144 or higher.

 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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

Could Aptos price buckle under pressure and crash 55%?

Could Aptos price buckle under pressure and crash 55%?

Aptos (APT) price is pushing on the red descending trend line to trigger a breakout trade with a rally toward $20.36. The move is an outlier as the downtrend since the beginning of February has not finished one day in the green. 

More Cryptocurrencies News

Cardano price looks overpriced, 17% nosedive likely for ADA

Cardano price looks overpriced, 17% nosedive likely for ADA

Cardano (ADA) traders need to face reality as markets are pivoting back toward a sticky inflation story, which contradicts the Goldilocks story that was the driving force in January.

More Cardano News

Luna Classic gears up for recovery after Binance support and latest upgrade

Luna Classic gears up for recovery after Binance support and latest upgrade

Terra Classic (LUNC) formerly known as LUNA is upgrading from its v1.0.4 version to v1.0.5. The world’s largest exchange by volume, Binance has announced support for Luna Classic, fueling a bullish narrative among LUNC holders. 

More Luna Classic News

XRP Price Prediction: Will Powell propel Ripple or dampen the 2023 bull rally?

XRP Price Prediction: Will Powell propel Ripple or dampen the 2023 bull rally?

Ripple (XRP) price sees traders front-running the main event for today with Federal Reserve Chair Jerome Powell taking the stage later this evening at 17:00 GMT in Washington.

More Ripple News

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin (BTC) price is at an inflection point as it continues to rally amid multiple sell signals on lower time frames. The Nonfarm Payrolls (NFP) report, including the unemployment rate and average hourly earnings, is set to be announced on February 3 at 1330 GMT.

Read full analysis

BTC

ETH

XRP