- Solana price has printed a toppish signal that suggests a cautious short-term outlook for the token.
- SOL could be vulnerable to a 13% nosedive if it does not discover reliable support.
- The Ethereum killer must stay above $161 in order for the bulls to restore the prevailing uptrend
Solana price has encountered a bearish signal that suggests that SOL may face a retracement before continuing its uptrend. The Ethereum killer may slide 13% toward a critical support trend line at $161 before the bulls plan for a comeback.
Solana price lags behind
Solana price has formed an ascending parallel channel on the 12-hour chart, indicating an overall uptrend. However, a top signal given by the Momentum Reversal Indicator (MRI) has emerged, suggesting that a reversal for SOL is in the offing.
The first line of defense for Solana price is at $187, where the 200 twelve-hour Simple Moving Average (SMA) and 21 twelve-hour SMA coincide. SOL will discover an additional foothold at the 50 twelve-hour SMA at $183.
Further support will emerge at the support line given by the MRI at $176 before Solana price drops lower toward the 78.6% Fibonacci retracement level at $172. If SOL fails to hold above the aforementioned lines of defense, the Ethereum killer could slide lower to reach the lower boundary of the prevailing chart pattern at $161, where the December 11 low sits.
If selling pressure continues to increase and the bears continue to take charge, Solana price could plunge further, tagging the October 10 high at $152.
SOL/USDT 12-hour chart
However, if a spike in buy orders occurs, Solana price could tag the 61.8% Fibonacci retracement level at $190, then the 100 twelve-hour SMA at $203, intersecting with the 50% retracement level.
If Solana price manages to surge above the aforementioned level, SOL may be out of the woods and the token could target the middle boundary of the governing technical pattern at $222 but not before facing an obstacle at the 38.2% Fibonacci retracement level at $216.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
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.