SOL’s price experienced a significant decline in the past two days as selling pressure intensified. The key support levels for SOL are at $17, while the key resistance levels are at $20.
1. SOL Crashes on FTX News
SOL’s price crashed after news broke out that FTX, a prominent cryptocurrency exchange, planned to liquidate its SOL position. This news spooked the market, leading traders holding Solana to quickly liquidate their positions. As a result, the price of SOL experienced a 10% loss compared to the previous week. [source]
2. Bearish Momentum Intensifies
With sellers having full control of the price action, the most crucial level for Solana to hold is the $17 support level. If the price fails to hold at this level, it is more likely to revisit $15, which were the levels last seen in June. [source]
3. Lower Lows on MACD
The 3-day MACD histogram for SOL has made a lower low, indicating that sellers may continue to put pressure on the price, potentially pushing it lower in the future. If this downtrend persists, the daily RSI may reach the oversold area, triggering a potential bounce at the $17 level. [source]
The bias for SOL is bearish, reflecting the current market sentiment.
Short-Term Prediction for SOL Price
The price of SOL is expected to continue its downward trajectory and test the key support level at $17. If this support level holds, there may be a chance for bulls to reverse the downtrend. However, the bearish market sentiment and the FTX news may continue to discourage buyers from investing in SOL. [source]
Please note that the information provided in this article is based on the opinions of the quoted writers and does not represent the views of CryptoPotato. It is advisable to conduct your own research before making any investment decisions. [source]
[External Link: Cryptocurrency charts by TradingView]
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