By Solomon Odunayo
Briefly-
- Solana has its price lingering between the 24.52 weekly support and $47.43 weekly resistance.
- Further crashes appear likely, sending Solana towards the foothold at $19.
- Only a weekly candle closing beyond $47.43 can cancel the bearish narrative.
Solana (SOL) has seen extended declines since 4 April, forming nine weekly successive downside candlesticks. Market players can expect further nosedives as the broad market remains massively bearish. All assets noted substantial declines today.
Solana Continues Downside
Solana has lost approximately 88% from the $261.51 ATH. Multiple factors contributed to this decline, with the LUNA crash being the most recent one. The past week saw the alternative token losing more than 20%. For now, SOL trades between the resistance barrier of $47.43 and the support of $24.52.
Meanwhile, the absence of nearest footholds magnifies the chances of SOL’s extended crash. Market players can expect another 20% decline to $24.51. Though this level represents a significant barrier, market makers could push the alt to $19 to gather sell stops.
That would translate to a 36% drop from the $30.53 weekly open. Meanwhile, the discount will likely attract buyers. Bull’s resurgence might set the altcoin on a recovery path.
While the crypto market remains highly bearish, buying momentum resurgence can cancel selling strength. That would mean recoveries in crypto assets, including SOL.
Solana forming a weekly candle closing beyond $47.43 will confirm a bullish engulfing action, canceling the bearish narrative. Such scenarios can see Solana attempting a slight uptick towards the resistance zone at $77.66.
As highlighted above, bears control prices in the crypto spectrum. The marketplace welcomed the new week with a bearish leg, signifying more plunges in the coming sessions. While writing this blog, the cumulative value of all cryptocurrency assets stood at $1.03 trillion, losing 6.66% within the past day.
Also, the bellwether crypto, BTC, endured a massive hit within the past day. Bitcoin traded at $25,215 at this publication, dropping more than 8% over the past day.
Bitcoin remained weak, and analysts predict more declines for the crypto. Solana will likely mimic BTC’s price trends. SOL’s road with fewer hurdles is downward.
Stay tuned for upcoming news.
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