Solana Reaches Make-or-Break Point
Solana continues to trend lower, breaching almost all significant support levels underneath it.
Key Takeaways
- Solana has plummeted by nearly 26% over the past two weeks.
- The 50-day moving average is now holding prices.
- Breaching such a critical support level could see SOL take as much as a 50% nosedive.
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Solana has made it to a crucial support level as the entire cryptocurrency market bleeds. Such a vital demand barrier could determine whether SOL will rebound or lose further market value.
Solana at Critical Support
Solana has reached a pivotal point on its trend after seeing its price drop by nearly 26% over the past two weeks.
The fifth-largest cryptocurrency by market cap reached exhaustion following its all-time high of $259.90 on Nov. 6. The milestone appears to have been taken as an opportunity for investors to book profits, quickly reversing Solana’s uptrend.
Although SOL was projected to surge towards $330, the recent price has put the bullish thesis on hold.
Solana breached the $216 support provided by the x-axis of an ascending triangle where prices had previously broken out on Nov. 2. Now, the 50-day moving average at $192 represents the last support level for SOL to hold on to. Breaking through such a significant interest area could encourage investors to panic sell, accelerating the downtrend.
If this were to happen, Solana would likely test the 100-day moving average at $159 or drop towards the 200-day moving average at $96.
It is worth noting that sidelined investors could take the recent downswing as a chance to get back into the market. A spike in buying pressure around the current price levels might have the strength to revive the uptrend and push Solana towards the $330 target. A daily candlestick close above the triangle’s x-axis at $216 can confirm the optimistic outlook.
Still, it is imperative to see whether the 50-day moving average will hold since this is the most critical support level Solana has underneath it.
Disclosure: At the time of writing, the author of this feature owned BTC and ETH.
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