The price of the altcoin Solana (SOL) is facing strong selling pressure below the psychological level of $200. Technical data suggests that a correction of between 10% to 20% could be on the cards for SOL. Investors anticipating a drop could seize a buying opportunity if the $134 level is retested.
Downward Trend Looms for Altcoin SOL
The altcoin SOL price, which has given back half of the gains recorded last week, traded below the $200 psychological level. This downward trend could lead to further corrections in the upcoming days. It seems like altcoin SOL needs to catch its breath.
The cryptocurrency Solana has seen a 1022% increase since September 2023. This remarkable rise is due to Bitcoin‘s bull run and the over-selling of SOL linked to the bankrupt crypto exchange FTX. Last week, altcoin SOL recorded its highest weekly gain for the year 2024 with a 39% increase.
However, in the last five days, the price of altcoin SOL has experienced a significant drop around the $200 psychological level and is currently trading approximately 16% lower than the previous week’s closing level.
Key Points to Watch for Solana
There are key points that could be decisive for investors. Stable support levels could enhance the appeal of Solana. A weekly support at $152 and the midpoint of the previous bear market at $134 are among these supports. However, even though accumulating at the $134 level may seem attractive, the likelihood of such a correction following excessive rises is low.
If Solana overcomes the $200 psychological level, the likelihood of the uptrend continuing increases, while downturns in Bitcoin, the flagship of cryptocurrencies, could trip up altcoin SOL. On the other hand, a decisive weekly candlestick closing below $134 could signal a potential change in trend. This situation could lead to panic selling by weak hands.
However, we must be prepared for the worst-case scenario. If panic selling drives SOL below $100, an 11% drop could initiate a journey towards the $89 support level. Investors should consider such scenarios when forming their strategies and managing their risks. As of writing this article, the price of the altcoin Solana (SOL) is trading at $175.
