SOL Price Reversal Under 50% Fibonacci Warns Another Drop To $115
The post SOL Price Reversal Under 50% Fibonacci Warns Another Drop To $115 appeared first on Coinpedia Fintech News
The broader market sentiments struggle to turn green as the weekly closing in Bitcoin comes below $60K. Furthermore, the ETF markets reveal a weakness in the Bitcoin and Ethereum ETFs. Will this weakness lead to another bearish run in Solana, eventually dropping the SOL price under $100? Let’s take a closer look at the Solana price chart to find out the underlying risk.
Solana Price Performance
Following the recent crash of 40% from the $193 peak to the $115 bottom, a bounce back in Solana revived the bullish hope of survival. With a V-shaped recovery, the SOL price jumped to the $163 level, a 40% hike in 3 days.
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However, the bullish momentum quickly subsides with the incoming supply chilling down the hype. Although the recovery run surpassed the 50 and 200 EMA in the 4-hour chart, a reversal drops SOL price back under $150.
The Fibonacci retracement levels over the recent correction reveal the incoming supply surged at the 61.80% level. Further, it drops Solana under the 38.20% Fib level.
As the current sustenance above $140 comes as a retest of the broken 38.20% Fib level, the downside risk grows.
Technical Indicators:
RSI: The 4-hour RSI line halts before reaching the oversold boundary line for a minor surge. However, this only increases the downside potential with additional loss possible before the SOL price hits the oversold category.
EMA: The V-shaped recovery fails to overturn the 50 and 200 EMAs alignment, and the ongoing correction has increased the gap. Thus, the dynamic averages in the 4-hour chart are now acting as bearish agents of resistance.
Will The SOL Price Hit $115?
Failing to accumulate enough bullish momentum to absorb incoming waves of supply, the downfall in Solana is likely to continue. However, the bullish dominance at 23.60% Fibonacci level at $133 is a crucial crossroads.
A breakdown below $133 will test the $115 level. However, a reversal rally could reclaim the $150 for a jump to $180 in the weeks ahead.