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SOL Holds Above Critical Support, is Reversal in Play?


Key Support levels: $187, $170

Key Resistance level: $204

SOL managed to find good support on the $187 level, which may provide some hope when it comes to halting the downtrend. The current resistance sits at $204, and it may take longer for SOL to attempt to breach above it.

Ever since the cryptocurrency made the all-time high at $260, the price has charted lower lows and lower highs, putting SOL in a clear downtrend. Until this is reversed, the bears remain in control.

Chart by TradingView

Technical Indicators

Trading Volume: The volume peaked during the December 4th crash, and since then it has been decreasing every day as the price fell. This is a good sign for bulls as they may have an opening to take back control from bears.

RSI: The daily RSI continues to go lower. If bulls manage to stop the downtrend at the current support level, then the RSI can finally attempt a reversal. On the 4-hour timeframe, the RSI is making higher lows which gives hope to bulls.

MACD: MACD remains bearish on the daily timeframe. The moving averages are expanding, and the histogram is making lower lows. This is a bearish signal, and a reversal seems far away at this time.

Chart by TradingView

Bias

The bias is bearish as long as Solana fails to stop the downtrend.

Short-Term Prediction for SOL Price

Solana had a very poor month in November and a worse start in December with the crash. The price action is in a clear downtrend, and so far, all attempts to stop it failed. If SOL can hold above the key support at $187, then it might enter a consolidation which would flip the bias to neutral.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.



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