2021 was quite impressive for cryptocurrency investors, hosting significant price rallies. But what about 2023? In the past 9 months, apart from some exceptional altcoins, we haven’t seen massive gains. And even those exceptions have given back a significant portion of their profits. SOL Coin, the star of the last bull season, has also experienced massive losses. Since the November crash, the Solana community has suffered irreparable losses.
Solana, once the most popular Ethereum killer, has now reached long-term horizontal and diagonal support levels. While readings on the weekly chart indicate further decline, there is still hope for an upward trend on the daily chart.
On the long-term weekly chart, the price has dropped from its peak of $32.13 in July to $18. This region, except for June, has been an important support level for bulls throughout the year. The current negative sentiment seems to be connected to the assets of SOL Coin held by FTX, which will be unlocked.
The reaction of SOL Coin in the $18 region will determine its future price movement. If there is a bounce, the $27 resistance area could be tested with a 50% increase. This area has been a challenging target for bulls throughout the year and has not been overcome for a long time. On the other hand, in a bearish scenario, it is likely that the price will drop by 30% to $13.5.
Although the weekly RSI is in a downward trend, readings on the daily chart are more promising. This is because the SOL price has rebounded on the 256-day rising support line. This movement is the third bounce since the beginning of the year, and each time we have seen significant upward movements. Additionally, the SOL price is trading within a descending wedge, which is considered a bullish formation. The price is very close to breaking above the wedge’s resistance line.
Based on all these factors, the performance of SOL Coin price will depend on whether it breaks out of the wedge or falls from the rising support line and the $18 horizontal support area. In the case of a breakout, a 50% increase could occur, while in the opposite scenario, a 30% decline could be seen.