Cryptocurrencies

Solana Price Breaks down from Uptrend: Is SOL heading to $1.20?

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Written By: Elliott Laybourne
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    Summary:
  • The Solana price is rolling over in early trading Friday as the crypto market responds to the equity market meltdown.

The Solana price is rolling over in early trading Friday as the crypto market responds to the equity market meltdown. Solana (SOL) is down, trading at $192 (-8.6%), around 30% below the all-time high set earlier in the month. As a result, the layer-blockchains market cap has dropped from $76 billion to around $58 billion in the last two weeks. However, Solana remains the 50th most-valuable cryptocurrency ahead of Cardano (ADA).

A sharp rise in Covid-19 cases in South Africa, attributed to a deadly new strain, has sent shockwaves across risk assets today, driving US stock index futures sharply lower. Subsequently, Bitcoin is trading below $55,000 for the first time in six weeks, triggering liquidation of lower value crypto assets. As a result, Solana is starting to break down from a three-month uptrend, which could trigger an exaggerated move lower.

SOL price Analysis

The daily chart shows the Solana price is below the rising trendline at $200, although several highs and lows between $192 and $195 offer some support. Nonetheless, in my opinion, the rising trend line is significant, and a close at the current level is extremely negative, potentially targeting the $120 area.

Therefore, my current view is bearish, with a $120 price target. However, a close above the trend at $200 removes the immediate stress, invalidating the bearish call.

Solana Price Chart (daily)

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This post was last modified on %s = human-readable time difference 09:30

Written By: Elliott Laybourne

Elliott Laybourne is an accomplished Hedge Fund sales and Investment bank trading specialist. Elliott also started a successful Base Metals Brokerage business in partnership with ABN AMRO clearing bank. He worked on the open outcry trading floors at the London International Financial Futures Exchange 'LIFFE' and the London Metal Exchange 'LME.' He also provided research and execution services for Goldman Sachs, JP Morgan, Credit Suisse, Schroders Asset Management, and Pennsylvania State Public School Employees Retirement System, as amongst others. Today, he focuses on providing trading consultancy and business development services for family office and brokerage clientele.

Published by
Written By: Elliott Laybourne