Many investors are unsure what will happen to the Solana (SOL) price going forward after its recent 7 days decline of 13%. Will SOL make a strong comeback?
Solana has emerged as one of the most popular blockchains in the cryptocurrency industry due to its fast transactions and expanding ecosystem. However, it had a rough year in 2022, like others, and even worse due to the crash of FTX.
Fast-forward to January 2023, SOL started the year at $9.9610 and steadily rose above $20. At one point, SOL traded at $26, but it declined to $21.65% today due to a market-wide bearish trend. As a result, both investors and retail traders wonder if there’ll be a potential rebound or more dips in the future.
Solana (SOL), like many other cryptocurrencies, has been affected by the recent market collapse. SOL’s price may drop further due to a loss in demand, general negative sentiment, and selling pressure in the cryptocurrency market.
Also, the sudden decline of other significant cryptocurrencies like Bitcoin and Ethereum has impacted SOL negatively, leading to a decrease in its price.
SOL had a busy few weeks, reaching a remarkable high of $24.7 on April 15. Besides, futures traders with long positions incurred losses of about $650 million due to the falling price of major crypto assets. The liquidations were worse in Binance and OKX and continued till Sunday, April 23.
A negative trend remains as SOL dropped to $21.33 today after encountering a resistance level of $22.35 earlier. SOL has been trading in a downtrend pattern since today’s trading session. It appears that the bears are holding their ground as SOL is trading at $21.57, with a minor recovery.
SOL must protect $21.11 as its first defense against further losses, and the next significant support level will be below the $20 level if the bears continue to be in charge. If the market’s structure changes, the resistance to any further gains may be located near $22.35 at this time.
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The price has fluctuated between $21.11 and $21.40 during the last few hours, making it difficult for the bulls to push it beyond $22.35.
Technical indicators like the RSI and MACD exhibit a gloomy picture. The RSI is currently at 41.83, indicating that the market is close to the oversold region and that SOL may decline further if the buyers don’t take back control.
Featured image from Pixabay and chart from Tradingview
Eli brings an eclectic point of view to market analysis. Currently, he writes about various asset classes, including Crypto and Stocks. Eli has been writing crypto oriented content for almost 6 years now and he is a hard core believer in Blockchain and is confident that it can reform the traditional financial system. He also thinks Bitcoin will become universal currency in the near future. You can follow Eli on Twitter: @EliDambel
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