Left (LEFT) The overall trend is still bullish and the price is currently in a regular correction phase. This retracement brought a 40% loss to crypto traders, or just as much a buying opportunity, as the price held up to $150. Currently, the technical chart is pointing to an upside reversal from the $150 mark to the $200 mark.
Important Technical Points
- LEFT The price found support near the 50% Fibonacci retracement level.
- SOL’s intraday trading volume was around $2.51 billion, down 40%.
The SOL actually dropped to the $185 support level recently and was trying to hold it. However, extremely strong bears broke this support level and caused a drop of more than 20% in a week. However, SOL price managed to find sufficient support near the $150 support area, which coincides with the 50% Fibonacci retracement level on the daily chart. SOL price is up 18% over the days, signaling a bullish recovery.
SOL is currently trading at $176, threatening the formation of an “evening star candlestick pattern” on the daily chart. In addition, the intraday trading volume is also down by 40%.
The price finds support near the 100-days EMA, while the key EMAs (20, 50, 100 and 200) remain bullish. As such, EMAs do a great job of supporting falling prices and helping the bulls continue the trend.
The Daily Relative Strength Index (43) shows the failure of the slope to rise above the centerline on the daily chart due to possible formation of an evening star pattern.
SOL/USD Key Levels on Daily Chart
SOL price seems to be above the $170 level after multiple bullish candles formation. However, crypto trades should wait for a suitable breakout from overhead resistance to gain an entry opportunity.
As for the key support levels, traders should keep in mind that $150 and $125 will play an important role. Resistance levels are at $200 and $250.
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.