Solana price is on the verge of dipping 30% further by next week


  • Solana price has been in a solid rally higher until last week.
  • Sellers are dictating price action with a trend line as an essential reference point.
  • An early trend line that favored the bulls at the beginning of September is the last support bulls have before sellers go another leg lower in SOL.

Solana (SOL) was on a tear at the beginning of September. Since the failed attempt on September 9 to keep price action elevated, SOL has been fading and trading lower towards lower support levels that have been broken quite easily each time. Although bulls broke the red descending trend line, a rejection at the 23.6% Fibonacci level spells trouble.

Solana price might open the door to more downside

Solana price had a perfect run at the beginning of September, but price action retreated on September 9 after hitting $221. Sellers overhauled price action as buyers took too much profit and the momentum in favor of the bulls faded. Sellers since then broke a few Fibonacci levels and the monthly R1 resistance levels to the downside. 

For now, the purple descending trend line, originating from September 3, is holding the act of the bulls together. But the force from the red descending trend line is starting to squeeze price action in SOL against the purple line, ready for a break lower. With already three confirmed tests to the downside, this purple trend line is undoubtedly a force to be reckoned with.

SOL/USD daily chart

SOL/USD daily chart

With the squeeze in full effect, expect a lower break as the red trend line will be tested again soon and will be broken back to the downside. Proof can be found in the fact that the descending trend line has been protected already four times by sellers and will have scared each time more buyers out of their positions. The sellers’ next level of interest in profit-taking will be around the 61.8% Fibonacci level at $100. Add the monthly pivot near $90 as an additional factor, and this zone will offer a good entry for a fade-in trade for buyers.

When market sentiment would roll over sooner in favor of some favorable tailwinds for Solana’s price action, watch the break of the 23.6% Fibonacci level at $174. Buyers will emerge on that break, and bulls will kick price action into gear for a rerun towards £221 within a matter of weeks.

 

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Shiba Inu price stares at 15% breakout as SHIB loses directional bias

Shiba Inu price is stuck in a range since it set up the October 7 swing high. As SHIB currently sits on the mid-point of this range, it shows no directionality whatsoever. Therefore, a breakdown of the 50% Fibonacci retracement level could lead to a drop or an upswing if the buyers decide to make a comeback.

More Shiba Inu News

Ethereum price must crack this key level before exploding toward $6,400

Ethereum price has presented a massive bullish target on the daily chart, suggesting that ETH is preparing for a rally toward $6,400. However, there is one key resistance level to slice through before the token is propelled higher into price discovery territory.

More Ethereum News

Cardano's Charles Hoskinson says US wants to kill crypto as ADA price teeters on a 20% drop

Cardano price is currently facing a challenging situation where a breakdown of a crucial support floor could lead to a steep correction. Therefore, investors need to keep an eye out for ADA, which is close to triggering this descent.

More Cardano News

Institutions pour $3.6M into Polkadot ahead of parachain auctions, pushing DOT to breakout

Digital asset managers have reported a rise in the institutional capital inflow in Polkadot as the overall cryptocurrency market capitalization climbs higher. A Polkadot founder announced $774 million dedicated for developing DeFi projects. 

More Polkadot News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP