• Solana price action looked set to break out of the bearish triangle in a solid relief rally.
  • SOL price action instead underwent a painful rejection that saw bulls fleeing and the risk of a drop towards $58.84.
  • With geopolitics shifting back to more dire scenarios, momentum does not look great heading into the weekend for SOL investors.

Solana (SOL) price action was on the cusp of piercing a hole in the bearish triangle yesterday after a relief rally of four consecutive days took place. Instead, overnight headlines have shifted the balance from risk to risk-off. With markets on edge and nervous with the threat of the possible use of nuclear weapons by Russia and a tail risk from the meeting between Xi and Biden, investors are looking to keep their powder dry for the next week and instead enjoy the early spring sun today.

Solana price action at risk of a drop below $60.00

Solana price action is at risk of a significant drop as bears use a window of opportunity and a false sense of relief among bulls to provide a massive correction to SOL price action. This week, the relief rally hit a curb against the descending side of a bearish triangle. Bears were more than happy to use this opportunity to get in, helped by headwinds that emerged overnight from dire rhetoric on the Ukrainian situation and more negative headlines on lockdowns in China. 

SOL price action is set to shed 13% as under these circumstances bulls are in no condition to turn price action back up. Expect a drop back towards $75.34 and the triangle baseline, as well as the monthly S1 support and the low of February 24 – thus making it a significant level. A break below could trigger a rapid sell off towards $58.84, which would be a 32% fall from the current level today.

SOL/USD daily chart

SOL/USD daily chart

Should there come a turnaround over the weekend with some progress in peace talks, expect to see a quick retest on that sloping side near $90.00. The $95.00 handle will prove to be an issue with the 55-day Simple Moving Average coming in from above.  Five dollars above there, the $100 level coincides with the monthly pivot and will probably halt any further uptrend as the past two discussed levels will weigh on profit-taking and take away some of the steam in the rally.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP