SOL price falls 15% and has confirmed its bearish outlook. More downside is expected with $120 being the first target.
Key Takeaways
- Solana dropped from $154.60 to $131 recently.
- SOL’s outlook turned bearish, approaching $120 support.
- Potential further decline targets around $102.
On July 2, the price of Solana was in an uptrend, reaching $154.60 at its highest point. Since then, it made a downturn, falling close to $131 today, and is still trending downward. Previously, SOL had a bullish outlook but has now turned bearish, hinting at a potential lower low ahead.
With its significant horizontal support of $120 getting close, will we see a breakout below it, and if so, is the next target $100?
SOL Price Analysis
On March 18, Solana (SOL) peaked at $210 but sharply declined to $120 by May 1, marking a 43% drop. The price impressively recovered to nearly $190 by May 21, breaking through a crucial resistance level that had previously served as support.
After this recovery, SOL initially showed potential for further gains but soon fell below this critical level. The downturn from May 1 has shown three distinct waves, indicating a possible prolonged bearish trend. The break below the $160 mark confirmed that the surge to May 21 was merely a three-wave corrective pattern, suggesting the current decline might be part of a larger bearish phase or a complex three-wave correction starting from March 18.
Based on the trajectory of the current increase from June 24, two outcomes are possible. Chart analysis indicates SOL is consolidating below $157, forming a fourth wave before potentially descending to a new low at $102 in its fifth wave, completing a three-wave ABC correction.
SOL Price Prediction
Its rejection at the $153 confirmed this scenario. Now, as the price is close to its $120, it could make yet another interaction, ending the correction as a descending flat triangle.
Alternatively, and in our mind, a more probable scenario would be further downside movement past the $120 support. The descending resistance indicates that the sellers have continuously pressured the price.
Projecting the same length as the move from its yearly high of $210 to its first low of $121 on April 13 and to the first higher low of $190 on May 20, which is assumed to be the B wave, we come with a target of $102.
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