After another 3% drop in the last 24 hours, Solana continues to show signs of weakness daily. However, it remains bullish but is still looking for key levels to initiate new buys. The price is currently retracing.
The decline in late November continues to pose significant daily setbacks for Solana bulls, although the $200 level has contained the sell-off since the market's sudden crash last week.
After a brief rebound, the $240 level poses a threat to bulls, and the price has fallen, although volatility currently does not seem significant due to low supply. If supply increases, significant losses should be expected.
Looking back at the volatile price movements over the past week, Sol seems to be accumulating liquidity for another massive sell-off, potentially pulling the price back to the $190 and $180 areas, with buyers patiently waiting to enter the market in the coming days.
While the ongoing retracement phase provides a discount for long-term reaccumulation, once the price tests the white ascending trend line (which has acted as diagonal support since September), we can expect a significant rebound.
A break below this line could lead to the end of the bullish trend. However, from a technical perspective, further growth is expected in the future.
Key levels of SOL worth monitoring
As Sol retraces to the weekly support level around $210, the price must break through $200 to test the trend line at $194 and $183.4. From there, we can expect a rebound.
However, if the price rebounds from the current trading level, the direct resistance level to watch during the uptrend is $247, followed by $264.4. A breakout above this resistance could cause the price to surge quickly to $280 and $300.
Key resistance levels: $247, $264.4, $280
Key support levels: $210, $194, $183.4
Spot price: $217
Trend: Bearish
Volatility: Low