- Solana price trades today at $159 amid market indecision.
- SOL remains bearish as it trades within the confines of a descending parallel channel.
- Solana prediction is bearish as it aims for a 20% fall to areas below the $127 level.
Solana price retracement continues after setting a new record-high at $215 on September 07 when the rest of the crypto market was bleeding following the flash crash. Although SOL’s retracement started on Thursday September 09, the ‘Ethereum killer’ defied the ensuing bearish pressure to record a new all-time high (ATH) around $221 on Thursday. The altcoin’s bearish momentum is set to continue over the next few days.
Solana Price Correction Targets $127.85
Solana price has dropped 28% from its ATH around $221 and could be headed for further losses as its retracement ensues. The SOL price has formed a descending parallel channel on the daily chart as the ‘Ethereum killer’ continues to record lower lows. Note that as long as SOL continues to trade within the confines of the falling channel, the price correction will continue.
While SOL/USD continues to consolidate at the current price around $159.23, it is likely to discover support at the $150 psychological level. A drop further below this point could see bears pull the Solana price lower to tag the lower boundary of the falling channel at $127.85. If this happens, Solana would fall 20% from the current price.
SOL/USD Daily Chart
The Relative Strength Index (RSI) shows that Solana was massively overbought recently and the current correction means that the bullish momentum has burnt out. The movement of the RSI away from the overbought zone indicates that the sellers are on control of Solana (SOL) as profit-taking continues.
Also note that the Moving Average Convergence Divergence (MACD) Indicator has just sent a call to sell crypto signal on the daily chart. This occurred yesterday when the 12-day Exponential Moving Average (EMA) crossed below the 26-day moving average indicating that Solana’s market momentum has turned bearish.
However, things could turn in favour of the bulls If they push the Solana price to close the day above the resistance provided by the upper boundary of the descending channel at $164.10. If this happens, the Solana price could rise higher to tag the $173 resistance. A break above this level could propel Solana towards the $1.91 level or ATH at $221 before the correction continues.
Note that the upsloping SMAs and the position of the MACD above the zero line in the positive region indicates that Solana’s market sentiment remains bullish.
Where to buy SOL
If you wish to buy cryptocurrencies including Solana, crypto exchanges such as eToro , Binance, Coinbase, Bittrex and Kraken are good places to visit.
Looking to buy or trade Solana now? Invest at eToro!
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Nancy Lubale
