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Solana Price In 32% Downtrend Since May — Will It Hold Above $120?

Last Updated June 18, 2024 4:11 PM
Nikola Lazic
Last Updated June 18, 2024 4:11 PM

Key Takeaways

  • SOL rebounded to $190, then declined below critical support.
  • Current price trends suggest extended potential decline.
  • The future outlook hinges on $120 support interaction.

The price of Solana reached a high of $190 on May 21, 10% lower than its yearly high of $210. Since then, it has declined, losing over 30% of its value, and is now being traded at $134. SOL could continue its uptrend until $160, but as it fell through the support level, it is now eyeing its previous slightly above $120. 

Was this decline part of a corrective phase, or is it part of a larger downtrend that resulted in a breakout below $120?

SOL Price Analysis 

On March 18, SOL‘s price reached a high of $210, but by May 1, it had dropped to $120—a 43% decrease. However, it rebounded to nearly $190 by May 21, overcoming a critical resistance level that had previously acted as support.

SOL
SOLUSD | Credit: Nikola Lazic/Tradingview

After surpassing this resistance, SOL showed potential for further gains, though a subsequent decline again brought it below this level. This downturn since May 1 suggests a potential extended decline, marked by three distinct waves.

As it broke below the $160 zone, it proved that its rise to May 21 ended as a three-wave correction, making its current downtrend the past of either a larger downtrend or a higher-degree three-wave correction from March 18. 

SOL Price Prediction 

There are multiple scenarios ahead, depending on where the current decrease lands. 

SOL
SOLUSD | Credit: Nikola Lazic/Tradingview

Zooming into the hourly chart, we can see that there is still more room for decline as the $120 zone approaches. SOL could now consolidate for its lower-degree wave four around this zone before making another lower low for its fifth wave to $102. 

That would be the same length as the decrease from March 18 to April 13 and could signal the completion of a three-wave ABC correction. Alternatively, it it gets extended and goes below $102, our next target would be on the 1.618 Fibonacci extension level at $50, although it would need to cross a significant level of $80. 

 

Disclaimer
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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