Solana (SOL) Price Analysis: Will the Downtrend Continue? - COINTURK NEWS
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Solana (SOL) Price Analysis: Will the Downtrend Continue?

11:54 pm (34 days ago)
August 24, 2023

The bull market in 2021 was spectacular. Many altcoins increased hundreds or even thousands of times from their initial prices. However, all good things must come to an end, and we saw that with the arrival of November 2021. One of the top-performing altcoins during those good days was Solana (SOL). Now, it continues to hover at a double-digit price.

Solana (SOL) Review

Solana (SOL) price has dropped since its high of $28.34 in July and confirmed the $27 resistance area. This year, the $27 resistance has been a critical level for SOL coin investors. The price needed to convincingly surpass this level to initiate a major turnaround. However, it didn’t happen. Fortunately, it managed to recover from the $8 bottom with the support of Vitalik Buterin.

Most technical readings suggest that the downtrend could continue for SOL coin. However, the possibility of breaking the corrective formation cannot be ignored. Technical analysis for the weekly timeframe shows that the SOL price broke out of a declining resistance line in July.

Before the breakout, this trendline had been in place for 609 days and fueled the downward trend since reaching its all-time high price of $260. It was expected that Solana would significantly increase after the breakout, but the price stalled at the $27 horizontal resistance level. The price initially surpassed it but later formed a long upper wick and fell below the region.

SOL Coin Predictions

The inability of the SOL coin price to stay above the $27 resistance has raised doubts about the breakout of the 609-day trendline. If the downtrend continues, the descending resistance line will be around $15.5, which is 28% below the current price. After breakouts, it is common for the price to retest the level as support. Indeed, this level is known as one of the strongest support areas for SOL coin.

Although the weekly RSI was broken, it remained in a downtrend. Readings on the daily chart also confirm the downtrend. The main reason for this is the deviation and price drop at the $27 resistance area. However, since then, the price has been trading within a descending parallel channel. These channels usually include corrective movements. Therefore, it is possible for the price to break out of it. If so, the famous resistance needs to be broken.

In a positive scenario, SOL coin could shine again and reach the $115 resistance after $46. However, in the opposite scenario, the $18 and $15 support levels could be tested.

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