Solana (SOL) is trying to reverse up from $ 170
Solana (SOL) rebounded significantly on December 4th and prevented the current bullish structure from breaking.
The SOL has fallen since hitting an all-time high of $ 259.9 on Nov. 6. The decline continued until it hit a low of $ 169 on December 4th.
During the decline, SOL broke an ascending support line formed since September 22nd. Hence, the break indicates that the token has completed this upward move. In addition, it confirmed that line as a resistance on December 9th.
However, after the breakthrough, SOL bounced off the $ 170 support on December 4th. This is both horizontal support and 0.618 fib retracement support as measured by the upside move.
This is a very important area of support where several short term bounces could start. As long as the SOL is trading above it, the price action can still be viewed as bullish despite the breakdown from the support line.
Daily SOL / USDT chart | Source: TradingView
Trader @TradingTank sketched an SOL chart indicating the token could fall to $ 150 and possibly $ 130.
The source: Twitter
However, the token has recovered a bit since the tweet. The recovery took place in the $ 186 region formed on October 23rd. This has helped the award six times so far (green symbol).
In addition, the SOL acts within a descending parallel channel that is viewed as a corrective pattern. This means that an eventual breakout is expected.
However, the price is still trading in the lower part of the channel. If it can regain the centerline of the canal, the likelihood of a breakout in the near future increases sharply.
If an outbreak occurs, SOL could rise to new ATH levels and beyond.
SOL / USDT 6-hour chart | Source: TradingView
You can see the SOL prices here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.