Post-Retest Fall May Sink SOL Price To $20

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Last week’s sell-off in the crypto market pulled the Solana(SOL) price below the prior lower low support of $40. The breakdown tumbled the altcoin by 22% as it reached near the $26 mark. However, the demand pressure near the $26 mark could trigger a minor pullback to the breached resistance, providing a short entry opportunity.

Key points

  • The SOL chart shows lower price rejection candles near the $26 mark. 
  • The 20 DMA strengthens the resistance power of the descending trendline
  • The 24-hour trading volume in the Solana coin is $1.7 Billion, indicating an a1.98% gain

SOL/USDT ChartSource-Tradingview

The SOL/USDT pair has witnessed a steep fall after it turned from $143.3 resistance in April. The downfall slumped the altcoin 69% lower, hitting the $40 psychological level. However, this support temporarily stalled the selling pressure, resulting in a slow yet steady decline. 

Thus, responding to a descending trendline, the SOL price slumped back to the May low support of $40 Moreover, the recent sell-off in the crypto market struck the final push to break the $40 barrier.

Furthermore, after a few follow-up candles, the altcoin witnessed demand pressure near the $27-26 mark, indicating the price might revert to retest the breached support. The potential pullback would hit a strong supply zone formed by the aligned resistance level of $40, descending trendline, and 20-day EMA.

If the selling pressure persists, the SOL price will slump by 27%, down to the $20 psychological level.

Technical indicator

The rising MACD indicator slopes despite the falling price indicates weakness in the bearish momentum. This divergence could assist buyers in a bullish breakout from descending triangles.

The downsloping crucial EMAs(20, 50, 100, and 20) reflect a strong bear market as SOL price faces constant resistance from the fast-moving 20-day EMA. Thus, even if a potential rally simultaneously breaches the descending trendline and 20-day, the other EMAs are expected to limit bullish growth.

  • Resistance level- $35 and $44.3
  • Support levels- $20 and $16.78

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

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.

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