Solana price, suffered a significant loss, as seen in the entire cryptocurrency market. SOL has lost an average of 69% from its all-time high, but a substantial correction is coming.
Solana price poised to test resistance at $110
Solana price slumped from $146 to the current weekly low of $80, down nearly 45% since the opening last week. However, the substantial buy support SOL came close to the 50% Fibonacci retracement at $91 and since reaching this Fibonacci zone, the buyers have been in control and have maintained a steady rise over the past two trading days.
Left (LEFT) It is very likely that a significant low has been established for its price. This could be the starting point for another rally to all-time highs. The Relative Strength Index is oversold on the weekly and daily charts. Likewise, the Composite Index oscillator is showing all-time lows on the weekly chart, which also formed the second low in the daily Composite Index history.
Another factor contributing to the possibility of a wider uptrend is the current weekly candlestick pattern. “Hammer Bullish candlestick patterns” is one of the most sought-after reversal patterns in Japanese analysis.
Considering the extremely oversold nature of Solana price and the length of the current downtrend, if the bullish pattern is completed on the weekly chart, SOL could see some nice gains going forward.
Of course, even when a strong rally is attempted, Solana still has some resistance levels to overcome. The first of these resistance levels will be the $110 value area, which contains a cluster of previous Fibonacci convergence zones (indicated by the bold line) and a high volume node in the ‘volume profile’. If the bulls can put pressure on Solana price to rise and sustain above $110, the $150 level will be retestable.
Any weekly close below the 50% Fibonacci level at $91 will invalidate any near-term uptrend.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.