Solana price is bound to reacquaint with the $25 zone for these reasons
- Solana price shows bears are still in control on higher time frames.
- The bulls not have not yet produced a retaliation of equal or more value to the previous decline.
- Invalidation of the bearish short-term thesis is a breach above $38.
Solana price shows confounding evidence that the countertrend rally is waning. Key levels have been identified.
Solana price could fall again
Solana price might be headed for another round of liquidity hunts with bearish targets near the summer lows at $25. Currently, the SOL price is witnessing a stalemate near the 8-day exponential and 21-day simple moving averages. A spike in prices could result from the compression but is likely capped under the $38 price level based on the strength of previous bearish candles.
Solana currently auctions at $32.95. The price has hurdled back into supportive terrain on the Relative Strength Index after losing grounds twice since May 2022. The volume profile indicator still dictates the bears are in control based on the large uptick accompanied by the largest bearish candle produced on May 10. The bulls not have not yet produced a retaliation of equal or more value for sidelined investors to consider supporting.
SOL USD 3-Day Chart
Combining these factors, a scalp for short-term gains may be too risky for most investors. Thus this thesis remains bearish until the $38 level is breached. If the level is tagged, a challenge of the August high near $48 stands a fair chance of occurring. The bullish scenario would result in a 50% increase from the current Solana price.
In the following video, our analysts deep dive into the price action of Solana, analyzing key levels of interest in the market - FXStreet Team
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
