Recent Price Movements
With a remarkable 15% recovery over the past week, the SOL price jumped to the high of $20. However, the psychological resistance of the crucial price level and the 50-day EMA led to a sharp 4% fall. Moreover, the fall aligns with the market correction as Bitcoin plunges below $27K.
- The 4% fall makes a bearish engulfing and highlights an overhead resistance trendline, forming a bear channel.
- Currently, the SOL price hinges at the $19.45 level of the 61.80% Fibonacci level.
Currently, the SOL price is trading at $19.64 with an intraday growth of 0.41%, the bullish sprout may soon wither away under bearish pressure. This hints at a potential downtrend continuation in the falling channel.
With some hope left in the technical indicators, the MACD and RSI indicators are yet to reflect a significant change.
The MACD and signal lines shift sideways with declining histograms, warning of a bearish crossover.
The RSI line dips close to the halfway line but sustains above the 14-day SMA.
Will the SOL price Cross $20?
With the bearish channel in place and the downtrend set in motion, the chances of a bullish reversal in SOL price seem minimal. The volatility close to $19.45 is razor-sharp and might soon result in a quick move on either side.
The SOL price must remain above $19.45 for buyers to retake the $20 level and prepare for a breakout. On the flip side, a steep correction to $17.27 is possible if the price fails to hold.