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Solana Price Falls Below $170 Again — Is SOL Outlook Still Bullish?

Last Updated May 24, 2024 1:42 PM
Nikola Lazic
Last Updated May 24, 2024 1:42 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • Solana approached $190, near its all-time high before falling.
  • The recent drop challenges the previously-bullish outlook for SOL.
  • $165 support is crucial for future price direction.


Solana reached a high of nearly $190 on Tuesday, was only 11% off its all-time high of $210. Further upward movement was expected for SOL to potentially reach a new all-time high. Instead, it made a downturn from Tuesday, May 21. 

A 14% decrease happened, with the price of Solana falling back below $170. It is now close to its horizontal support zone. This undermines confidence in the bullish scenario, but not all hope is lost. 

SOL Price Analysis 

On March 18, the price of SOL peaked at $210 but dropped to $189 by May 1, a 43% decrease. By May 21, SOL had rebounded, approaching $190, surpassing the ascending resistance level formerly a baseline support.

 

Solana
SOLUSD | Credit: Nikola Lazic/Tradingview

After meeting this resistance, SOL broke through instead of dropping further, suggesting a potential for further increases. However, the downturn since Tuesday brought Solana ‘s price back below the resistance level. 

May 1 marked the lowest price since its peak, initiating the current upward trend. We’ve identified three possible five waves, hinting at a forthcoming downturn. But there are two scenarios ahead. 

There’s still a possibility that SOL is in a major correction phase. It should stay above $165 to maintain upward momentum, but the fall below $160 will conclusively invalidate the possibility of its being in a five-wave uptrend. 

If this happens, we could see further downside movement for its third wave C. As it should make a lower price point than May 1, the next likely target would be below $100. 

However, if the $165 zone holds and we see an immediate bounce, there is still potential for further gains. That would mean SOL ended its wave four correction and is headed to a higher high. The upside room would remain limited, because only one climb would be left in this five-wave impulse. 

But the price could easily revisit its all-time high of $210, if not slightly surpass it, coming to the $220 area.  

In conclusion, the main thing that would imply a future outlook is what happens at the $165 zone. A further decline below it would make bullish sentiment bearish, and vice versa. 

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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