The Solana price recovery hangs in the balance at a major area of support. With SOL in danger of breaking down, here are the levels to watch.
Solana is last trading at $38.8800, lower by $$0.3830 (-0.90%)
DeFi coin Solana has again reversed lower after failing to clear horizontal resistance at $41.7500. This is the fourth time in the last three days that SOL has flopped at what should now be considered an important barrier.
After starting the week on a positive note, cryptocurrencies have changed course and sellers are back in the driving seat.
Like most altcoins, the Solana price has followed Bitcoin’s path lower over the last three days. Subsequently, SOL has arrived at a critical juncture.
SOL could be considered a relative outperformer and is only 33% below its May all-time high of $58.5630. Moreover, the Solana price has more than doubled from the $19.1000 low on May 23rd.
Nonetheless, the positive momentum is rolling over and in danger of reversing altogether.
The 4-hour chart shows SOL is planted to the support of a significant trend line at $38.7000. The trend from May has reinforced SOL’s recovery over the last month. Therefore, I would consider it essential for the Solana price to maintain its footings above this pivotal support.
In the event that SOL loses this trend line, additional support can be found at $33.5000, as well as $25.7000.
However, at the moment, the trend is holding. If SOL reverses from here, $41.7500 is the obvious target. Following that, the $44.1500 double-top is the next and more significant resistance level.
Until the price moves decisively in either direction I maintain a neutral view. However, today’s price action will paint a clearer picture of what’s to follow.
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