- Solana price sees bulls getting slaughtered on Wednesday.
- SOL flirts with a crucial level that means trouble ahead.
- In case bears are able to push price action below this level, decline could be at hand with a near 40% loss.
Solana (SOL) price is tanking roughly 7% this Wednesday with an acceleration in the US trading session. The decline has brought price action in SOL at $18.66, a crucial level marked up from the steep inclination from January 14. Expect this level to either trigger a bounce, or else be the start of a bear market in case sellers are able to take over the stick from bulls. Such a scenario would start a descent that could bear 40% of devaluation for Solana.
Bulls have dropped the ball in Solana price and are now facing the consequences
Solana price has been on a very steep incline at the beginning of 2023 with a strong recovery above $25 at one point. Unfortunately, SOL bulls started to take too much profit and the fades to the downside only got bigger. Add to that another challenge for the dented image that cryptocurrencies bear with Silvergate Capital at the brinks of collapse and default, and you have the perfect explanation for why SOL is now flirting with a bear market.
SOL could start to see an acceleration in sell orders once $18.66 starts to break. Bulls will want to get out and book the remaining profit that they can with first a nosedive move towards $15.07 and 20% devaluation. Once at that level, a slow grind lower looks granted with another $5 to lose in its value and touch $10.94 by the end of this month.
SOL/USD 4H-chart
A tactical approach could be to keep calm and start buying into SOL as the Relative Strength Index (RSI) is already deep in oversold territory. That would mean that bears do not have many prospects for a further decline and instead a bounce off that $18.66 would be seen. The ideal candidate on the upside is $23 with the 55-day Simple Moving Average and the monthly pivot falling in line and forming a double cap on the topside.
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