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SOL Price Nearing $80 Support; Buy The Dip Now?

TradingView Chart


A V-top rejection from the $140 resistance tumbled the Solana(SOL) price by 25%. As a result, the coin buyers lost the $120 and $105 support it gained during the recovery phase. Seeing the altcoin is trading below the $105 support, the sellers aim to wipe out the entire gains from the March rally.

Key points

  • The SOL buyers lost the $105 support
  • The post-retest fall suggests a 20% devaluation of SOL price
  • The 24-hour trading volume in the Solana coin is $2.57 Billion, indicating a 12.03% gain

Source-Tradingview

The Solana(SOL) price witnessed an unwavering and parabolic rally during the latter part of March. The recovery rally reached the $140 mark after slicing through some significant resistance, such as $105 and $120.

The upswing recorded an 84% growth in just three weeks, preparing for a bullish breakout from $140 resistance. However, the sellers sabotaged the buyer’s attempt and reverted the coin price with similar force.

The V-top rejection discounted the SOL price by 25% and dropped it below $105. The traders must wait for the candle closing below this breached support to confirm a fallout.

However, the 157% volume spike accentuates the seller’s commitment to a downfall, indicating the price to retest January bottom support at $80.

Technical indicator

MACD Indicator: A negative crossover between the fast and slow line projects a sell signal for short traders. The rising red bars in the histogram chart highlight an increasing trend momentum.

DMA: The current price drop undermined the bullish crossover of the 20 and 100 DMA. The sustained selling may breach the 50 DMA support, encouraging the price to hit $80.

  • Resistance level- $105 and $120
  • Support levels- $93 and $80

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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