Altcoins
Solana at Risk of $150 Correction Wave Amid Ongoing Market Crash
As the current cryptocurrency market crash intensifies the Solana price retest, buyers are struggling to sustain prices at $170 amid a recent 4% intraday decline.
Amidst the general market correction, the sharp increase in the supply wave liquidated $157 million in long positions in the last 12 hours. Ethereum is the most affected, with $100 million in bullish positions liquidated in the last 24 hours. Amidst this, Ethereum’s killer, Solanashares a similar fate with nearly $10 million of long positions wiped out as SOL falls to $170.
Despite the bearish influence on the market, top analysts and price action analysis hint at a potential rebound. Will Solana survive the market crash to surpass $200 in 2024?
Solana Clings to $170 as Supply High Retest Warns of Failed Breakout
Despite forming two huge bullish candles to break a resistance trendline, the broader market pullback could result in a failed Solana upswing. In the weekly chart below, the surprising 40% surge in two weeks fails to sustain momentum as it falls 7% this week.
As the chart shows, Solana is currently in a retest phase. However, a lower price rejection is visible on the chart, but the plummeting prices are now warning of a failed breakout.
Currently, Solana is trading at $171 with an intraday decline of 4.20%. Moreover, the piercing bearish candle is the product of the FUD crash and warns of a slide below the broken trendline.
By canceling the breakout, the fall could potentially lead to an intense and prolonged correction that could cause the psychological barrier of $150 to be lost.
According to momentum indicators, the MACD and signal lines are ready for a bullish crossover to support the breakout rally. Meanwhile, the daily RSI line holding above the midline reveals sufficient demand.
Solana’s recovery chances are visible on shorter time frames
On the 4H chart, the SOL trend breaks a long-standing support trendline with a massive 4.19% drop. Weakening the previous day’s surge, the bearish engulfing candle is now testing the 50D EMA and the $169 support area.
Currently, Solana is forming a green Doji candle at a critical support zone, increasing the chances of a bounce to retest the broken trendline. However, a relief rally in the broader market could fuel Solana’s bounce back above the $180 mark.
Will SOL Price Recover to $200?
The wave of market-wide corrections is causing additional pressure on altcoins, leading Solana to crash to $170. However, several bullish elements holding firm to avoid a further correction are increasing the likelihood of a reversal.
According to the Fibonacci levels on the weekly chart, the post-retest reversal rally could push Solana above the 78.60% Fibonacci level at $198. Thus, the next potential target for SOL is $198 and $249.
Conversely, if the intense supply results in a failed breakout, the next support levels lie at $162 and $155.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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