On May 23, the bulls initially succeeded in pushing Solana above the critical breakdown level of $19.85. Unfortunately, their triumph was short-lived as they struggled to maintain the upward momentum. This indicates that the bears are actively selling during brief relief rallies. It is crucial to recognize that despite the initial surge, Solana's price remains exposed to additional downward pressure, making it susceptible to further declines.
The bearish market structure of #Solana persisted as prices continued to form a sequence of lower highs, amplifying the advantage for sellers. With prevailing market conditions and the breach of the $20 support level by bears, altcoin's position was further undermined.
On May 24, a bearish candle formed, causing SOL to trade within a range-bound pattern. Neither the Bulls nor the Bears have been able to establish dominance, leaving the breakout in either direction to determine the new trend.
Currently, the SOL/USD pair is trading below two key levels: the 200 hourly simple moving average and the price level of $19.70. On the 4-hour chart, there is a noticeable bearish trend line forming, which suggests strong resistance at approximately $19.70.
#SOLANA is facing resistance near the $19.70 mark. A significant resistance area follows closely around $20, which corresponds to the 50% Fibonacci retracement level calculated from the downward movement between the swing high of $21.51 and the low of $18.60. At present, the primary resistance is forming around $20.50. In the event that the price successfully surpasses and closes above $20.50, there is a possibility of a potential recovery towards the resistance zone at $21.50. If the upward momentum continues, it may extend further towards the $22 level.
If SOL fails to surpass the resistance at $20.50, it is likely to continue its downward movement. The initial level of support on the downside is expected around $19.00. Following that, a significant support area is projected near $18.80. A break below this level could potentially amplify the bearish momentum. In such a case, the price of Solana may decline further towards the support level at $18.20. The subsequent major support level to monitor would be approximately $17.50.
Based on Price Analysis, the market capitalization of this SOL is $7,718,058,807. The 24-hour trading volume of the coin is around $126,396,745.
KEY LEVELS :
RESISTANCE LEVEL : $20.00-$20.80
SUPPORT LEVEL : $18.70-$18.00
Disclaimer: Crypto is not regulated and can offer considerable risks. There may be no regulatory remedies available in the event of any losses resulting from price analysis. As a result, before engaging in any transactions involving crypto products, each investor must perform in-depth examination or seek independent advice.
