- The bullish reversal trend pauses at the $120 mark for a short pullback.
- The declining trend in trading volume suggests a potential bounce back if buyers sustain dominance at $90.
- A possible breakdown below the 50D EMA can result in a 30% drop to the $66 mark.
With a bearish breakdown of a triangle pattern in the daily chart, the SOL price pullback phase warns of a serious downfall. Leading to the drop in the crypto market, Solana falls under the $100 psychological mark and warns of a trend reversal in 2024.
Undermining the remarkable bull run in the last weeks of December, Solana tests the $82 mark standing with the 38.20% Fibonacci level. With the technical analysis sirening a breakout signal, the sideline traders are ready to sell.
Hence, with such growing sentiments of fear around Solana, the upcoming trend warns of the crash. However, to find out more about the long-term picture, check out our Solana price prediction.
Source – TradingView
With a boom in the intraday trading volume, the Solana price takes a nosedive of 7.99% overnight. Further, the daily chart alerts the SOL price fracturing long-coming support trendline and marks a triangle breakdown.
With the altcoins losing the crucial support of $100 and the support trendline, the bears are gaining control and warning of a trend reversal. Currently, the SOL price trades at $84.54 and tests the 38.20% Fibonacci level.
With $12 million of long positions liquidating last night, the bulls are exiting Solana at a fast pace. This puts the crucial support levels under extreme pressure, and the struggle to absorb the increased supply grows serious.
Technical Indicators:
MACD Indicator: The falling trend in the MACD and signal lines crosses under the halfway line as the SOL price drops to $82. Moreover, with the increasing intensity of the bearish histograms, the bearish momentum is on the rise.
Will SOL Price Downfall Test $50?
Despite the intense sell-off gaining traction and the breakdown signal, the SOL price sustains above the next crucial support of $80. Further, with the 38.20% Fibonacci level providing a cushion, Solana may soon bounce back.
Nevertheless, the sideline buyers can find the entry at $80 as a great dip to buy opportunity. On the flip side, a downfall under $80, can drop the SOL price to $66.
Source: https://coinpedia.org/price-analysis/sol-price-fall-warns-30-drop-as-pullback-gains-momentum-2/