• Solana price dug deep inside the $115.51 to $144.70 demand zone after the January 20 flash crash.
  • Despite the recent sell-off, SOL can alleviate the bearish outlook by recovering above $135.71.
  • A swing low below $115.51 will create a lower low, triggering a 35% crash to $78.76.

Solana price experienced a crash on January 20, slicing through two crucial barriers. However, SOL has not created a lower low from a high time frame perspective, suggesting that buyers are preventing a further decline.

Solana price at make or break point

Solana price crashed 16% in 24 hours, causing it to slice through the 200-day Simple Moving Average (SMA) at $140.54 and the weekly support level at $135.71. Interestingly, this development was cushioned by the bullish momentum since the crash occurred inside a daily demand zone that extends from $115.51 to $144.70.

A breakdown of the said demand zone to create a daily candlestick close below $115.51 will create a lower low from a high time frame perspective, indicating that the price wants to head lower. However, Solana price is currently inside this demand zone and has a chance to recover.

A daily candlestick close above the weekly support level at $135.71 and preferably above the 200-day SMA at $140.54 will indicate a resurgence of buyers and indicate that SOL could retest the 50-day SMA coinciding with the daily supply zone, extending from $169.79 to $179.19, constituting a 33% advance.

SOL/USDT 1-day chart

SOL/USDT 1-day chart

On the other hand, if Solana price produces a daily candlestick close below $115.51 it will create a lower low, invalidating the bullish thesis. This development will suggest that a bearish outlook is in play and open the path for a 35% crash to the next daily demand zone that stretches from $65.91 to $78.76.

 

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 Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Forecasting Ethereum price accumulation levels should bears takeover before FOMC

Forecasting Ethereum price accumulation levels should bears takeover before FOMC

Ethereum price shows a clear sideways structure as it encounters a crucial hurdle. As a result, ETH has set up a liquidity zone around this level, but the winds might shift in favor of bears and induce volatility on Feb 1 when the FOMC convenes.

More Ethereum news

US Department of Justice brings down crypto ransomware group “Hive”, blocked over $130 million ransoms

US Department of Justice brings down crypto ransomware group “Hive”, blocked over $130 million ransoms

The crypto space is no stranger to hacks and ransomware attacks as the anonymity that the blockchain technology offers masks the criminals easily. It seems like, the United States has managed to stop the crime before it could occur.

More Cryptocurrencies news

Hedera Hashgraph Price Prediction: HBAR's plan for 2023

Hedera Hashgraph Price Prediction: HBAR's plan for 2023

Hedera Hashgraph price continues to bless loyal investors as the scalable smart contract token has rallied by 117% since the start of the new year. A breach of the trend at $0.06 could signal an end to the rally.

More Hedera Hashgraph news

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

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

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.

More Solana news

US Dollar Index struggles to defend 102.00 ahead of US PMI, GDP data

US Dollar Index struggles to defend 102.00 ahead of US PMI, GDP data

US Dollar Index (DXY) seesaws near 102.00 as the bulls struggle to defend the first daily gains in three, marked the previous day, during early Tuesday’s inactive trading.

Read full analysis

BTC

ETH

XRP