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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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.