Key takeaways
- SOL is down 1% in the last 24 hours and is now trading below $220.
- The coin could reclaim the $250 psychological level soon if market recovery continues.
SOL dips below $220
As seen in recent weeks, the cryptocurrency market began the new week in a bearish mode. Bitcoin dropped below the $112k mark while Ether temporarily tested the $4k support level.
SOL, the native coin of the Solana blockchain, also lost roughly 5% of its value on Monday, dropping to the $212 support level. However, it has slightly bounced back and is now trading at $219 per coin.
The positive performance comes as the broader cryptocurrency market embarks on a recovery. Bitcoin reclaimed the $113k mark earlier today, while Ether is now eyeing the $4,300 region.
SOL is also recovering excellently and could reclaim the $250 psychological level in the near term.
SOL could surge to $250
The SOL/USD 4-hour chart is bearish and efficient, as Solana has lost 7% of its value over the last seven days. The technical indicators are also negative, suggesting that sellers remain in control.
However, the bears are losing steam as SOL has found support around the $212 region. The RSI of 34 is below the neutral 50, indicating a bearish trend. The MACD lines also dropped below the neutral zone over the weekend.
If the selloff continues, SOL could retest Monday’s low of $212 over the next few hours. An extended bearish run could see the cryptocurrency drop below $200 for the first time since September 1st.
However, the broader crypto market is undergoing a correction. If the correction persists, SOL could reclaim the nearest resistance and TLQ level at $250 over the next few hours. It would need the support of the broader cryptocurrency market if it intends to hit $260 for the first time since January.