$36 Breakdown Teases SOL Price to Revisit $26

Last week, the Solana (SOL) price witnessed a V-shaped recovery and rallied to the $42.6 mark. However, the supply pressure at this level triggered a pullback and plunged the coin price below the flipped support of $37. If selling pressure persists, the altcoin will continue the downward spiral to $26.

Key points

• The SOL price shows a decisive breakdown from the $37 support
• The SOL price shows a 16.5% loss in the past four days
• The 24-hour trading volume in the Solana coin is $1.32 Billion, indicating a 4.6% gain

Source-Tradingview

From mid-May to June, the SOL/USDT pair shaped a steady downward approach under the influence of a descending trendline. The downfall reached a low of $26.06 but reverted immediately as the broader market started to recover.

Furthermore, sustained buying pierced the dynamic resistance trendline and reached the $43 mark. However, the SOL price turned from this resistance with an evening star candle and tumbled by 46%.

The bearish reversal has recently breached the $37 flipped support, indicating the downward spiral would push the coin lower. A daily candlestick closing below $36 could intensify the current correction and dump the SOL price 28% down to the $26 mark.

However, if the coin fails to sustain the retest phase below the $36 mark, buyers may push the price higher to retest the $43 mark.

Technical indicator

Similar to price action, the daily-RSI slope couldn’t sustain above the midline (50%), indicating weakness in the bullish momentum. The indicator may soon breach the 14-SMA line to bolster the ongoing selling.

The recent price jump had managed to reclaim the fast-moving 20-day EMA. However, similar to $37 support, the SOL price failed to sustain above this EMA may encourage additional selling in the market.

• Resistance level- $37 and $43
• Support levels- $31 and $26