Solana price likely to dip lower as SOL bulls lose control
- Solana price broke out of a parallel channel on January 20.
- SOL has failed to reenter the channel, leaving bears in complete control.
- Further selling pressure could push the so-called “Ethereum killer” to $70.00 or even $55.00.
Solana price remains in a downtrend after the 40% sell-off it experienced in late January. Branching the $81 support level could result in a steeper decline.
Solana price spells trouble
Solana bears have managed to maintain control of the price action as the first retest of the broken trend channel was successfully led to rejection on February 10.
The second attempt by the bulls to break such a crucial resistance level was also met with decent selling pressure, which suggests Solana price could capitulate. Slicing through the $81 support level could give an opportunity for sidelined investors to re-enter the market at $69.
But if the bulls cannot hold SOL price above $69, then the next bearish impulse could result in a test of the demand zone between $60 and $44.
Solana Daily Chart
The Relative Strength Index, or RSI, has shown no evidence of price recovery. For this reason, early buyers should stay far away from entering long Solana positions.
It is worth noting that a daily close above the swing high on February 15 at $106 can be considered as the first invalidation sign of the bearish thesis. If Solana price can successfully hold above $106, it would attempt to make a 32% run-up towards $140.
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FXStreet Team
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