SOL Price Analysis: Under Deep Retracement, Will Solana Prices Resurge Above $25?
Qadir AK2 Aug 20231 min read
Failing to sustain a consolidation range, the SOL price reverses within the falling channel leading to a bearish range breakout. The breakdown rally retests and continues to crash below $25, increasing the retracement to 18% within the falling channel.
Currently, the SOL price action shows lower price rejection from the midline to rechallenge the overhead resistance trendline. Additionally, the reversal finds footing at the $23 support, presenting a double-bottom reversal.
With multiple long-tail candles, SOL price action highlights buyers struggling to absorb the supply pressure. Moreover, the Solana coin price is down by 1.83% in the last 24 hours, representing a stronger bearish side.
The double bottom forming at the $23 support level finds no RSI bullish divergence. The RSI line reverses from the halfway line after the sudden spike, maintaining an overall downtrend. However, the MACD indicator shows a bullish crossover in action, supporting the resistance breakout theory.
Considering the downtrend continues, a breakdown below $23 will signal a selling opportunity for Solana traders. The breakdown rally can challenge the bullish dominance at $20, accounting for a 12% drop.
On the flip side, an upside breakout of the falling channel will unleash the trapped bullish momentum and challenge the supply pressure at $30. However, the rally might face some opposition at the $25 mark.
