Solana price prediction: a bearish breakdown of the month-long range setup puts Solana’s price in a longer correction. Thus, losing the $12.75 support may intensify the ongoing selling pressure and push the prices back to the last swing low of $11.35. But will this support replenish the bullish momentum or encourage prolonged downfall?
Key points
- The $12.75 breakdown sets Solana coin price for a 7.5% downfall.
- An evident bullish divergence in the daily-RSI slope indicates a potential bullish reversal from $11.35
- The 24-hour trading volume in the Solana coin is $192 Million, indicating a 0.3% gain.
Source-Tradingview
For nearly a month, the Solana price wobbled in a fixed range from $15 to $12.75. This long consolidation was supposed to bolster the coin price for higher recovery once it breached the overhead resistance of $15.
However, the recent sell-off in the crypto market triggered by FUD surrounding Binance and hearsay for US Fed to tighten interest rate hikes caused significant outflow in Solana coin. As a result, the coin price ended the range setup in the seller’s favor with a breakdown of $12.75 support.
On December 16th, the Solana price breached the $12.75 support with increasing volume, indicating the sellers are aiming to visit lower levels. However, with the ongoing uncertainty in the crypto market, this altcoin is stuck in a retest phase.
Today, the SOL price trades at $12.25 with an intraday gain of 2.35% Furthermore, the higher price rejection candle attached to this daily candle indicates the intense selling pressure from above.
If this selling pressure persists, the altcoin should eventually drop 7.5% lower to pierce the $11.35 support.
Conversely, if the recent selling pressure was solely due to panic selling in the market, the Solana price should rebound from the $11.35 mark.
Technical indicator
Relative strength index: Despite the sideways price action, the higher high movement in the daily RSI slope indicates growth in underlying bullishness and a higher possibility for price reversal.
EMA’s: the large gap between the crucial EMAs(20, 50, 100, and 200) indicates the overall trend is bearish.
- Resistance level- $12.7 and $15
- Support levels- $11.35 and $10
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