SOL could soon rally to $100

Late last week, SOL lost the $100 support level which turned it into resistance. After this negative sentiment, it is not surprising that the price of SOL dropped to $80 on Monday.

• Major Support Tiers: $79, $56
• Key Resistance: $100, $130

SOL broke below $100 on Saturday and confirmed it as resistance the next day.

This caused the price to briefly plunge towards the $80 level before recovering slightly.

The $79-80 support is likely to be retested as selling pressures remain strong. However, with SOL technical indicators currently extremely oversold, a rally could occur at any time in the coming hours or days.

Daily SOL/USDT chart | Source: TradingView

Technical indicators

Volume: Massive selling volume over the past four days, a bad sign for the bulls but as per overall market sentiment, along with the underlying reason related to the Solana network failing again.

RSI: The RSI moved into the oversold territory for the intraday period, with a reading of 20. Such a low has not been seen since December 2020.

MACD: The daily MACD has been falling for almost a week and there are no signs of this stopping any time soon. Both the histogram and the MACD line are making lower lows.

Daily SOL/USDT chart | Source: TradingView

Perspectives

The current trend is bearish. However, with the SOL currently in an extreme sell-off, a rally to the $100 level could be imminent.

Short term prediction

Eventually sellers will burn out and it will be risky to push prices further down when the RR (risk/reward) ratio is less attractive. Therefore, the SOL has a good chance of starting a strong rally to $100 or higher.

However, for that to happen, the bulls need to hold the critical support at $79.

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.

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