Critical Support for Solana
The level of $19.80 holds significant importance for Solana (SOL) price action. Robust buying activity at this level has previously facilitated the recovery of SOL’s price following a decline.
If SOL manages to maintain its position above the aforementioned support at $19.80, it has the potential to ascend towards target levels of $20.93 and subsequently $21.53.
Risks and Downside
Daily closes below the critical support of $19.80 could exacerbate the downtrend and trigger a movement towards the support range spanning from $17.50 to $16.27. Investors should closely monitor price closes at these levels.
Currently, SOL is trading around $20.30, reflecting a daily decrease exceeding 3.50%. The analysis suggests that daily closes below $19.80 could extend the downtrend towards the critical support range of $17.50 – $16.27.
Assessing Solana’s daily technical chart, the analysis conducted on August 22nd underscored the significance of the $19.80 level. Strong buying response at this level could trigger an uptrend. On August 22nd, SOL experienced a dip to this level, followed by a robust upward surge, resulting in an 11% gain for readers.
Presently, Solana’s price hovers around $20.30, indicating a daily decline of over 3.50%. The price trajectory closely aligns with the $19.80 support. Notably, daily closes below $19.80 may prolong the downtrend towards the critical support range of $17.50 – $16.27.
However, if SOL garners strong buying interest within the $17.50 – $16.27 support range, an uptrend could initiate from this pivotal support level, driving the price towards $19 and subsequently $22 levels.
Scrutinizing Solana’s short-term technical chart reveals the nearest support level at $20. If SOL witnesses robust buying activity within the highlighted orange support zone, it holds the potential to commence an uptrend from this support, targeting $20.93 and subsequently $21.53.
Conversely, a series of 2-hour closes below $19.85 could sustain the downtrend. As long as SOL remains below $19.85, the decline may extend towards the range of $19.30 – $19.
In the event of hourly closes below $19.22, the potential exists for an extended decline towards $18.46. SOL investors are advised to closely monitor closing movements at the outlined support and resistance levels mentioned in this analysis.