Solana Price Prediction: Signs of a steeper correction underway
|- Solana price lost 6% of market value last week.
- Retesting the monthly low at $19.68 would result in a 12% decline and could catalyze a much larger downswing.
- Invalidation of the bearish thesis would come from a break above $23.87.
Solano price is displaying bearish cues during the final week of February. Traders should keep the centralized smart contract on their watch list for a potential bearish trade.
Solana price could retest the lows
Solana price hints at an upcoming downswing as the technicals consolidate near the mid-22 dollar zone. Last week, the SOL price witnessed a 6% decline as the bears established a weekly close beneath the 8-day exponential moving average. On February 27th, the Solanaprice continued to find resistance as the 21-Day SMA rejected the retaliation bounce from last week's low at $21.41.
Solano price currently auctions at $22.60. The moving average indicators suggest that shorter-term traders are building momentum to the downside. A Fibonacci retracement tool surrounding Solana's winter rally from the low at $8 into the high at $27.12 shows a substantial amount of cushion space below. It is common for strong impulses to retrace between 50 and 61.8% of a move. The Solana price could decline as low as the $10.30 zone before the winter rally continues its next leg up. This leaves the potential for a 55% decline in Solana's price from the current market value.
Still, traders should take one step at a time before calling an end to Solana's Impressive 2.5x rally since December 30. The first stopping grounds for the bears would be February's monthly low at $19.68. Such a move would result in a 12% decline from SOL's current market value. A sweep of this low would confirm the bias that a much steeper pullback is underway.
SOL/USDT 1-Day Chart
Invalidation of the bearish thesis would arrive from a break above February's monthly opening price at $23.87. if the bulls reconquer this level, the winter rally could continue heading north, leading to a breach of February's high at $27.12. A retest of the monthly high would result in a 20% increase from Solanas current price.
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