Solana falls more than 40%: Crypto Analysis of April 18, 2024

After a general decline in the crypto market, Solana faced selling pressure, wiping out the gains from its last month of increase. Let’s examine the upcoming outlook for the price of SOL. 

Situation of Solana (SOL)

After reaching a peak at $211, Solana experienced a decline that brought its price down to around $170. This level acted as support for SOL, allowing it to regain momentum, but not enough to surpass its recent peak. Thus, Solana has stabilized once again at the $170 mark, and unfortunately for it, the overall downturn in the cryptocurrency market led to a sharp fall of over 30%. It was only from the $120 mark that the cryptocurrency’s price began to attract buying interest, enabling it to quickly recover to $150. As positive as this may appear, it seems that this interest is waning compared to that of sellers.

Indeed, as these lines are written, the price of Solana is trading around $128. Thus, the last rise in SOL seems to have been absorbed by sellers. Although the overall trend remains bullish, Solana is now trading below its 50-day moving averages. The oscillators, along with SOL itself, unequivocally illustrate a market dynamic revised downwards. Therefore, each of these elements suggests a continuation of the downward movement that the cryptocurrency has started.

The current technical analysis was conducted in collaboration with Elie FT, an investor and trader passionate about the cryptocurrency market. Today a trainer at Family Trading, a community of thousands of independent traders active since 2017. It offers Lives, educational content, and support around financial markets in a professional and warm atmosphere.

Hypotheses for the price of Solana (SOL)

• If the price of Solana maintains above $120, we could anticipate a bullish continuation up to the $150 level. The next resistance to consider, if the bullish move continues, could be the $170 or even $180 mark. At that point, it would represent an increase of over 39%.

• If the price of Solana fails to hold above $120, a retest of the $110 level could be envisaged. The next support to consider, if the bearish move continues, would be around $95. At that stage, it would represent a decrease of less than -26%.

Conclusion

After reaching a peak at $211, Solana suffered a drop of over 40% in the context of an overall downturn in the cryptocurrency market. Despite a subtle resurgence of buying interest and a fundamentally bullish trend, numerous indicators show a potential extension of the bearish move. Thus, it will be crucial to attentively monitor the price reaction at different key levels to confirm or refute the current assumptions. It is also important to remain vigilant of potential market “fake outs” and “squeezes” in each scenario. Finally, let’s remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies can also evolve rapidly due to other more fundamental factors.