Solana Price Falls 31% But SOL Ascending Support Still Holds
Solana fell by 31% over the weekend, but bounce from its ascending support. Is the crash over?
Key Takeaways
- Solana (SOL) price reflects broader market downturn.
- Recovery dependent on ascending support’s resilience.
- Leverage reduction impacts market liquidity.
The Solana cryptocurrency has experienced a significant price drop, reflecting a broader downtrend in the cryptocurrency market. From its Friday high of $172, Solana saw a 31% decline, measured at SOL’s lowest point on Sunday, at $119. However, the price found support at its ascending trendline anchored at $51 back in November last year. The following recovery pushed the price back above $155. Was this just a reaction, or would the ascending support bounce cause another lasting upward advancement?
Leverage Gets Flushed
This decline has influenced the open interest in Solana. This has decreased by 21% to $1.6 billion over the last 24 hours, as reported by CoinGlass .
This drop in Solana‘s price has also led to traders’ liquidation of SOL long positions, totaling approximately $36.55 million on April 13 and $41,49 on April 12. These traders had anticipated a significant price increase in Solana before the upcoming Bitcoin halving event.
Solana (SOL) Price Analysis
In our previous price projection, we anticipated this drop in SOL price. With our target being met, is this the end of the price decline?
On March 18, the value of SOL surged to $210, but by March 20, it had fallen by 21% to $162. After this decline, SOL began to show signs of recovery, forming what seemed to be an ascending triangle pattern. The recent high of $200 served as a contact point with the pattern’s resistance level.
However, this approach to the resistance level led to a price rejection, causing SOL to fall back to the starting point of its most recent upward trend. This pullback suggested underlying market weakness. The analysis suggested this might be the culmination of an ending diagonal pattern, potentially heralding a significant future downturn.
In this broader five-wave impulse sequence, the ascending triangle is the fifth wave, ending in a truncation that fails to surpass the previous peak’s height. A fall below the ascending support line would confirm a bearish outlook, leading SOL toward a new low beyond the March 20 dip.
SOL’s declined to the 1.618 Fibonacci extension level at $130, with a wick on the 4-hour chart even spiking further down. Recovery from Saturday could be a reaction to this steep decline as the larger wave structure suggested the uptrend is completed.
If this is the case, SOL can make another downturn, breaking the ascending support. In that case, our next target would be the significant horizontal zone of $80.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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