Solana price has erased Sunday’s gains as the bears remain in control. In early Monday trading, the crypto was down by 8.14% at $91.75. At its current level, the bulls are eyeing for a rebound to the crucial level of $150. Notably, it had been hovering around this psychological zone earlier in the month before dropping past it about a week ago. However, it will likely evasive in the near term.
Solana’s trajectory is comparable to that of other digital assets such as Bitcoin and Ethereum. BTC has remained close to the six-month low it hit on Saturday at 34,464.85. It plunged below the support zone of $40,000 on Friday. Ethereum is also close to its six-month low after dropping past the psychologically crucial level of $3,000 late last week.
Since the beginning of last week, SOL has been in the red for six out of eight sessions. On a broader perspective, it has declined by 64.41% since hitting its all-time high in early November.
Notably, the formation of the head and shoulder pattern on a daily chart preceded the downward momentum that has shaped the altcoin’s path in 2022. The pattern, which is usually a bearish formation, spanned over 2021’s last quarter.
In early Monday trading, Solana price edged below Sunday’s close while finding support along its five-month low of 87.98 for the third session. It has remained in the oversold territory since Saturday when the RSI reading dropped to 21. At the time of writing, its RSI was at 23. A move below 30 signals an extended move of the asset’s prices to the downside.
In the short term, I expect Solana price to record a corrective bounce even as it remains in the bear market. It will likely rise to around 105 as the bulls gather enough momentum to push it further to the next target at 115.72. On the flip side, a decline past the current support level at 87.98 may push it to August 2021’s low of 81.71.
This post was last modified on Jan 24, 2022, 03:42 GMT 03:42