Solana Price Prediction: SOL Grapples with a Critical resistance level

Summary:

Although the Solana price has recovered from last week's broad crypto selloff, the SOL token remains locked in a downtrend

Although the Solana price has recovered from last week’s broad crypto selloff, the SOL token remains locked in a downtrend that threatens to derail the recent rally. SOL emerged as a clear favourite in August as interest in Non-Fungible Tokens (NFT) boomed, and Ethereum’s (ETH) high transaction costs propelled Solana (SOL) to the top of the food chain. Subsequently, SOL rallied 500% to a record price of $216 on September 9th.

However, on September 14th, the Solana network buckled under the weight of its newfound popularity, experiencing an outage that lasted for 18 hours, bringing its credentials as a legitimate threat to Ethereum into question. As a result, within a week, the Solana price was 45% off the highs and changing hands at $115. Over the last week, the SOL token has stabilised, gaining 30% to yesterday’s $149 high. However, sellers have emerged towards $150, which could point to a short-term top.

SOL Price Forecast

The 4-hour chart shows a descending trend channel from the all-time high is currently capping the Solana price at $147. The trend aligns with a series of highs on the 23rd and 24th of September, around $152, to offer confluent resistance.

Until SOL clears $152, the downtrend will dominate the price action, forcing Solana lower. Moderate support is seen between $120-125, and if this area holds, SOL could force the breakout and target the 18th of September high if $171. However, if Solana fails to maintain $120, it would suggest a material deterioration in the technicals and potentially lead to a retest of the lower edge of the trend channel at $95.00.