Popular altcoin Solana (SOL) appears to be above a critical support level after falling 38% in the past eight days.
- The price action of popular altcoin Solana has generated more than $250 million in liquidations since the peak and has lost $27 million in the last 24 hours.
- Now the SOL sits above a key support level that will determine where it goes next.
- According to analyst Ali Martinez, if buy orders pile up, SOL could retest previous all-time highs. According to Ali Martinez, however, an increase in downside pressure could drop the altcoin to $96.
Many investors struggled to correctly time Solana’s price action last week, with losses of $250 million.
Popular altcoin Solana liquidates bulls and bears!
A Solana downfall led to a massive $250 million liquidation. High-yield Blockchain’s SOL token has had an impressive 877% bull run since July 20. The “Ethereum killer” has risen from $22.10 to an all-time high of $216, making it the seventh-largest cryptocurrency. After the $216 peak on September 9, traders are having a hard time predicting the price action of SOL.
Since the peak, more than $250 million long and short positions have been liquidated, with losses of more than $27 million in the last 24 hours. One of the main reasons for such an erratic price movement was the problem of “intermittent instability” that the Solana network experienced on Sept. 14. A denial-of-service attack disabled the blockchain for about 18 hours, creating panic among token holders. Sales pushed prices down 17% to $142.60 in a matter of hours.
Analyst: Watch carefully, SOL can see these levels!
While the price of popular altcoin Solana has been fluctuating since the outage, it has yet to reach a vital support level. On the daily chart, the 38.2% Fibonacci retracement level and the middle Bollinger band seem to act as a strong foothold for the SOL. If this demand can hold the wall, the SOL could return to the 23.6% Fibonacci retracement level from the $170 low or even the all-time high to $216.
Still, traders should pay attention to the $142 support level in the next few days. Breaking this level could lead to a steeper correction towards the 50-day moving average and the 61.8% Fibonacci retracement level at $96.
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