This week saw Sol through a slight pullback after posting a significant gain last week. It currently appears weak, looking for close support.
Sol’s recent performance was awe-inspiring as it suddenly rose from a low of $170 to a new all-time high of $296 – marking an insane 70% gain in a single week. That speedily drove positive sentiment back in the market, but the asset lost buzz and closed last weekend at $250.
Starting this week on a negative note, the bulls attempted to sustain the momentum but they failed following multiple rejections under $280. This brought a little setback for the bulls and they are now on the verge of losing control on the lower timeframe, forming a bearish pattern hourly.
Looking at the current price weakness on the daily chart, the weekly timeframe is still suggested strong for more buys. A drop below this week’s low could wash the recent gain off to bring trading back around the monthly low. A breakdown there could result in a major sell-off.
But from the look of things, the price is expected to see more growth in the coming weeks with the newly formed W-pattern on the daily chart.
The neckline break is yet to be confirmed. A daily close above $270 should set the pace for a massive run up to a new high. Regardless of the latest drops, Sol’s overall market structure is still considered bullish weekly.
SOL’s Key Level To Watch
Source: Tradingview
Now that the price is facing down, the $223 level is the closest support to watch for a bounce. A dip below it could roll the price back to $202 and potentially $185.
To resume bullish, Sol must retake the rejected $272 level along with the current $296 high before marking a new one at around $300 and $320.
Key Resistance Levels: $272, $296, $320
Key Support Levels: $223, $202, $185
- Spot Price: $244.7
- Trend: Bullish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/solana-price-analysis-prediction-january-23-sol-enters-pullback-mode-after-a-week-rally-looking-for-support/