Solana Price: As the Bitcoin price hovers below $65,000, the altcoin sector is experiencing performance issues. The volatile market conditions have particularly impacted Solana’s native token, SOL, which has seen its market value dip below the $150 threshold. This correction has brought it down to crucial support levels, where traders are keenly watching for a potential reversal point. 

Amid this uncertainty, investors, colloquially known as sidewinders, are poised for a bullish entry. Will the altcoin drop to $100 or take an early reversal to resurface above $150?

Also Read: Solana Memecoins Face Weekly Selling Pressure

Here’s Why $120 Level Stands As Crucial Support For Solana Price

Solana Price| Tradingview

With the broader market uncertainty intensifying, Solana struggles to pause the increasing supply waves. The growing selling pressure leads to an almost 40% fall in the SOL price within two weeks. 

Amidst the downfall, this high-performance altcoin loses the psychological mark of $150 and tests the 100D EMA. However, the daily candles reflect lower price rejection highlighting demand at lower levels. 

Currently, the SOL price is heading closer to the long-coming support trendline for a new bullish bounce back. This ascending trendline has acted as dynamic support for the past five months, offering investors a suitable platform to accumulate during dip opportunities. With the Bitcoin halving just around the corner, the Solana price is like to utilize the support trendline to prevent correction below $120. The altcoin trades at $137, with an intraday growth of 1.20% forming a Doji candle. 

Further, the Solana market price tests the 38.20% Fibonacci level. Hence, the daily chart of the SOL price trend showcases multiple bullish supports aligned to ignite the next recovery rally.

Also Read: Solana’s DePIN Project IO Net Tokenomics Revealed, What Next?

Will Solana Price Return to Recovery Trend?

As the broader market remains volatile, the Solana price trend highlights a possibility of a bullish reversal. With a long-coming support trendline in play, the sidelines anticipated a prolonged uptrend with another bounce back. In such a case, the SOL price could surpass the psychological mark of $150 and aim for the $200 resistance level. 

Conversely, an increment in the supply pressure could nosedive Solana to the next psychological support level at $100.  

Technical Indicator

Exponential Moving Average: The 50-day fails to provide a bounce back as the altcoin tests the 100-day EMA.  
Directional Movement Index: The bearish crossover in the DI lines is gaining space, reflecting an intense correction wave. The rise in the ADX line showcases a surge in trend momentum.  

The post Will Bitcoin’s Pre-Halving Correction Push Solana Price to $100 Again? appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am