Market

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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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.