Published 7 seconds ago
Amidst the ongoing sell-off in the crypto market, the Solana (SOL) price reversed from the $45 resistance and triggered a minor retracement. The downfall has pierced immediate support of $38.4 and is poised to hit the prior higher low support of $32. But what if altcoin breached this support as well?
- SOL price may drop 10% before hitting the next significant support of $32
- The coin holders lose 20-and-50 EMA of the daily time frame chart
- The 24-hour trading volume in the Solana coin is $1.46 Billion, indicating an 11.3% gain
After the SOL/USDT pair bounced back from the $26 support on June 14th, the coin chart has displayed a steady growth of new higher highs and lows. This run-up marked $45 as the new local top and triggered a minor correction, indicating a pullback opportunity for traders.
However, as the US FED is preparing to raise interest rates on July 27th, the market witnessed high volatility, resulting in a deeper correction in the majority of cryptocurrencies. Thus, the SOL price faced the same fate and plugged 21.25% since last week.
Furthermore, this downfall has breached in-between support of $38.4, which may flip to a suitable resistance and accelerate the selling momentum. However, a minor retest to the breached support should validate this breakdown and offer a quick short-entry opportunity.
The sustained selling will lead the SOL price 10% lower to hit the higher low support of $32. Moreover, if the sellers pull the altcoin below the aforementioned level, the prices may plummet to the $26 mark.
EMAs: The SOL price nosedived below the 20-and-50-day EMA offers an extra edge for bears. Moreover, these EMAs may flip to viable resistance and increase the number of hurdles a potential rally may face.
Vortex indicator: the VI+ and VI- slopes have drawn quite close to each other, indicating a loss of bullish momentum. In addition, a potential crossover among these may offer additional confirmation for sellers.
- Resistance level- $38 and $45
- Support levels- $32 and $26
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.