- Solana price is positioned for a strong bearish continuation move into the $30 value area.
- Only one support level in the Ichimoku system is currently providing support.
- A 35% to 40% wipe from SOL's present value area is expected.
Solana price action continues to face selling pressure since hitting a weekly high near the $60 value area. While SOL is down 15% from the weekly high, it is still up nearly 34% from the new 2022 lows established during last week's flash crash. However, the current price action is warning that a return to the 2022 lows is increasingly likely to surpass those lows.
Solana price is positioned to fall back to the 2021 Volume Point of Control
Solana price is in a very touchy spot on the daily chart. Currently, it is just above the daily Tenkan-Sen. Unfortunately for bulls, the Tenkan-Sen has acted as the primary resistance level for SOL since April 6, 2022, as bulls have been unable to create any meaningful or sustained move above it.
If Solana price closes below $48, then SOL will be below the current high volume node, likely triggering a fast sell-off until the next high volume node. Unfortunately, that next high-volume node doesn't appear until $33, where the 2021 Volume Point of Control exists.
SOL/USDT Daily Ichimoku Kinko Hyo Chart
Fortunately, for bears, the conditions that buyers would need to create to reduce any further near-term threats are extremely difficult. Even if bulls could push Solana price to a close above the Kijun-Sen at $70, they would still be stuck with the high volume node and 2022 Volume Point of Control between $87 and $100.
The only near-term bullish condition is the presence of a Kumo Twist. Kumo Twists are occurrences where Senkou Span A crosses Senkou Span B (the Cloud changes color). If an instrument is trending into a Kumo Twist, then there is a strong probability that the trend will face a correction or a trend change.
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
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin 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 ETFs in January and the reduced supply following the fourth halving event in April.
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.