Some Light at the End of the Bearish Tunnel for Solana (SOL)
2022.06.08 12:31
Some Light at the End of the Bearish Tunnel for Solana (SOL)
- Despite the efforts of bulls, SOL has continued to form lower lows and even lower highs.
- At the moment, it seems like SOL is stuck between $41.25 to $37.37.
- It now seems like SOL is somewhat stabilizing around $37,.37, which means a turnaround for the Ethereum-killer is a definite possibility.
Solana’s (SOL) price recovery has been very unsuccessful. Despite the efforts of bulls, SOL has continued to form lower lows and even lower highs which just shines more light on its persistent downtrend. There might be some light at the end of the tunnel for SOL as it seems like the crypto is consolidating between two barriers, attempting to break out.
At the moment, it seems like SOL is stuck between $41.25 to $37.37. This comes after Solana’s price moved from consolidating between the $41.25 support level and the 55.97% resistance level. This move is very clearly bearish, but it does seem like the lows are stabilizing around the $37.37 foothold.
Investors should be very cautious about a move above the $41.25 level as it could create a false sense of hope. If the price moves to over $45, however, it is much more possible to see an uptrend.
SOL/USDT 4h. Source: FXStreet
Another thing that investors need to take into consideration is the fact that SOL has been on a downtrend since May 16. It has also been producing lower lows since the May 12 crash and the subsequent swing high at $59,31. But luckily, it now seems like SOL is somewhat stabilizing around $37.37, which means a turnaround for the Ethereum-killer is a definite possibility.
On the other hand, if it were to happen that the sellers take control again and flip the $37.37 support level into a resistance barrier on the four-hour chart, it could cancel out the bullish thesis for SOL.
According to CoinMarketCap, SOL is now worth $38.97 after a 0.19% drop in price over the last 24 hours.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.
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