Next Key Solana (SOL) Support Revealed

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As an analyst with over two decades of experience in the cryptocurrency market, I’ve seen my fair share of bull and bear runs. Looking at Solana (SOL) right now, it seems we’re in the midst of a bearish phase. The asset is currently trading around $210, stuck in a descending channel that shows no signs of breaking yet.

Due to its continued movement within a downward trending pattern, Solana (SOL) appears to be exhibiting bearish trends, implying that the price could decrease further. Currently trading at approximately $210, SOL has been gradually falling short of its previous highs around $280. The fact that it’s struggling to break free from this channel suggests a lack of strong near-term bullish momentum.

presently, the 50 Exponential Moving Average (EMA) serves as a critical barrier for SOL prices, with recent market activity suggesting that Solana is hovering near this point. Although brief efforts have been made to regain ground, the minimal trading volume and persistent absence of buying power suggest that the downward trend remains intact. If Solana fails to surpass this level in the coming days, there’s a possibility for further price drops, as the 100 EMA aligns closely with the lower boundary of the descending channel at approximately $196, representing the next major support level.

The significance of SOL staying within its current zone lies in the possibility that a drop below it could trigger a rapid decrease in price, potentially pushing it down towards the 200 Exponential Moving Average (EMA), which previously functioned as a strong support level around $175 during periods of consolidation. However, if Solana manages to break free from its descending channel and regain the $196 support, there’s a chance it could rebound and reach towards the $225 mark, indicating an upward shift in the upper range of the channel.

For a complete turnaround, SOL needs to reclaim the $250 mark and sustain its progress beyond the current channel. However, even though the Relative Strength Index (RSI) is in a bearish trend and displays downward momentum, it’s not yet oversold, suggesting that there might be further declines before a significant recovery attempt takes place.

Keeping an eye on the $196 support level is crucial since abrupt increases might signal a breakdown or reversal. If there are no clear bullish signals yet, it seems that Solana’s market dynamics will likely remain tense for now.

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2024-12-19 17:37