The Solana (SOL) price broke down from long- and short-term support levels. A bearish trend is to be expected.
SOL is the native token of the Solana blockchain, created by Anatoly Yakovenko. It uses the proof-of-stake (POS) consensus mechanism. The Solana protocol mainly deals with smart contracts.
The Solana price has decreased since reaching an all-time high of $259.90 in Nov. 2021. The decrease caused a breakdown from the long-term $29 horizontal support area. Afterward, the Solana price reached a low of $10.94 in Nov. 2022.
There are no bullish reversal signs in place. This is especially visible in the weekly RSI, which is below 50 and has not generated any bullish divergence.
As a result, the most likely scenario indicates that the SOL price will fall toward the next support area at $4. Measuring from the current price, this would be a fall of nearly 70%.
Reclaiming the $29 area would invalidate this bearish Solana price projection. Currently, there are no signs that suggest such a reclaim will occur.
Solana Price Breaks Down From Short-Term Support
The six-hour chart aligns with the weekly one, providing a bearish Solana price forecast. There are two main reasons for this:
- The breakdown from the $13.50 horizontal support area (red icon)
- The short-term descending resistance line.
After the breakdown, the SOL price bounced slightly at the 0.5 Fib retracement support level of $12.95. However, it has not sustained any sort of upward movement. The 0.5 Fib retracement support level if the final one before a new yearly low. As a result, a breakdown below it could accelerate the drop rate.
Conversely, a breakout from the resistance line is required for the trend to be bullish. Even if this were to occur, the ensuing upward movement would be expected to be a relief rally prior to another drop.
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