Solana price loses uptrend; Is sideways movement next, or will 26% corrections follow?

Solana price is hovering around the $24 mark, standing right above the immediate support level at $22.77.
The altcoin lost its almost four weeks longs uptrend, with the indicators also highlighting an active downtrend.
If bullish cues take over and SOL rises above the critical resistance at $28.28, the bearish thesis will be invalidated.

Solana price impressed traders and investors alike this month when the altcoin marked an exceptional rally of more than 150% to touch the $26 mark. Although, at the moment, the movement is slow, the altcoin is susceptible to further decline in value if it loses this level as well.

Solana price reverses direction

Solana price on the daily chart has been moving sideways over the last few trading sessions after the uptrend took a break since January 20. This sideways movement also invalidated the month-long uptrend resulting in the price being stuck around $23.93.

If the broader market cues turn bearish and Solana price starts slipping, it will first face the immediate support at $22.77, losing which will result in the value of the altcoin further falling to the critical support at $17.89, marking a 26% decline.

Any more red candles from here on, and SOL will be back to the post-November 2022 crash.

The Parabolic Stop and Reverse (SAR) indicator highlights the probability of a slip in price high as well. The presence of the blue dots of the indicator above the candlesticks points in the same direction.

SOL/USD 1-day chart

However, if the cooldown ends and Solana price goes back to climbing the charts, recovery of the uptrend could be on the cards.

This would push the price toward the critical resistance at $28.28. A daily candlestick close above this level would invalidate the bearish thesis, putting SOL on the way toward $32.06 and further.

Share: Cryptos feed

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