Solana holds critical support for drowning avoidance, how long will this last?

The price of Solana (SOL) has been fluctuating relative to the price of Tether (USDT), causing more pain for hodlers. Despite showing such strong momentum, the price of Solana (SOL) has risen from the $30s in recent weeks to around $45 as many investors hope for more relief to bounce back to around the $60s. Solana (SOL) price was rejected and continued to fall without a significant rebound. (Data from Binance)

Solana (SOL) Price Analysis on the Weekly Chart

The price of SOL fell from $250 to around $30, down more than 70% from its all-time high. After hitting a weekly low of $32, the price of SOL rebounded to $45, showing strong strength as many set prices and expectations of a bounce back to $60, but price was rejected.

On the weekly chart, SOL price formed a downtrend line, continued to respect this resistance line, and the rebound continued to be bearish. Nonetheless, the price of SOL was rejected by the trendline resistance after a while and was unable to break out of this trendline.

SOL is trading above the key support level of $30; SOL price must hold above this level to avoid a drop to $24-20. With the price of SOL holding this support, we may be able to trade towards the $35 area. A break below $30 would signal a return of demand to lower territory and bulls are reluctant to enter buy orders as sentiment towards price declines would be stronger.

In order to resume the bullish trend, the price of SOL must break and remain above the trendline resistance that is preventing the price of SOL from moving higher. If the price of SOL continues to reject the trendline resistance, the price may decline as there are more sell orders than buy orders.

Weekly resistance for SOL price – $45.

Weekly support for SOL price – $30.

Price Analysis of SOL on the Daily (1D) Chart

Daily SOL Price Chart | Source: SOLUSDT on Tradingview.com

The daily time frame for SOL prices continues to deteriorate as the price breaks down and the price is in a channel with resistance at $45 and support at $30.

The price of SOL must break above this range channel The heavy trading volume restored hope and relief to most investors. A breakout and close below $30 is bad for the SOL structure as the price will face more sell orders and panic. If the price of SOL breaks out and closes above $45, we could see a small rally into the $60-80 range.

SOL’s Relative Strength Index (RSI) is above 40 on the daily chart, indicating an increase in sell orders.

Daily resistance for SOL price – $45.

Daily support for SOL price – $30.

Featured Image From zipmex, Charts From Tradingview

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