The weakness in the crypto market over the past week is taking a heavy toll on altcoins. Solana has not been spared. The coin is now in a bear market trend, and sellers could well push it towards $20 in the coming weeks. This will represent a fall of over 50% in less than 7 days. Here are some other notable facts to note:
SOL is trading between weekly support of $24.52 and weekly resistance of $47.43
The coin is currently slightly above support after a 16% plunge in 24 hours
If this support is lost, SOL will revisit $19 before any upward momentum
As noted above, over the past two weeks, SOL has seen massive volatility. Although there were times when the coin showed some decent bullish signs, its uptrend has often been limited to the $47.43 support. As a result, the altcoin has established a weekly range between support and resistance.
However, after plunging by nearly 16% over the last 24 hours and by a whopping 40% in seven days, SOL is now dangerously close to the $24.52 support than the $47.43 resistance. The downtrend is also quite strong since it is aligned with broader sentiment in the market.
For this reason, we expect weakness to continue, and eventually, SOL will likely lose $24.52. If this happens, a decisive fall toward $19 will be more or less inevitable. This analysis will however become null and void if SOL can push above the $47.43 resistance. We don’t think this will happen.
Investors are taking a wait-and-see attitude when it comes to crypto. So, for the time being, We are not going to see so much buying activity for SOL and other altcoins.
It would be best to give it a month and see how the price action plays out. But if we remain suppressed below $20 for long, things could get harder for SOL bulls in the near term.