The price of Solana (SOL) could fall by another 30% if it does not maintain this level
Date: 2023-07-26 Author: Karina Ziganova Categories: BLOCKCHAIN, CRYPTO PAYMENTS
The price of the native token of the Solana Blockchain price has been rising since June 10. During this time, it reached a new one-year high of $32.13 and broke above the long-term downward resistance line
However, the short-term performance of the SOL price casts doubt on the possibility of a reversal.
Solana can't keep it going
Technical analysis of the weekly timeframe shows that three weeks ago, SOL broke the descending resistance line that had existed since November 2021. Such breakouts often signal the end of the previous trend and the beginning of a reversal. The possibility of changing the direction of movement is confirmed by four bullish candlesticks that formed after reaching the lows in June.
The legitimacy of the breakout is confirmed by the weekly Relative Strength Index (RSI), which has fixed above the 50 mark.
However, it is worth noting that the price of Solana was never able to close above the horizontal area of $27, resulting in a long upper wick (marked with a red icon on the chart), indicating selling pressure.
SOL Price Prediction: There Are Still Chances of a Reversal
The readings of the daily timeframe look ambiguous. The main reason for this is the deviation above the $27 resistance area and the subsequent fall below it (it is marked with a red circle on the chart). Such price movements are considered bearish and often lead to significant declines.
In addition, the daily RSI risks falling below the 50 mark. In such a case, SOL is likely to fall to $18, reaching the upward support line that has been in place since December 2022.
As such, Solana's long-term price outlook is bullish, while the short-term forecast remains bearish as long as the asset trades below the $27 horizontal area. Consolidating above it could lead to an increase to $35.
