The cryptocurrency market kicked off the second week of July with a downturn, despite a positive close to the previous week. Bitcoin, the leading cryptocurrency, experienced a significant pullback, nearing the $56,000 range. The price of Solana (SOL) mirrored this trend, with a notable correction in its value.
With heightened volatility across the crypto landscape, investors are wondering: will Solana price stage a bullish reversal this week, or will it sink to new lows?
Solana Price Tests Crucial Support Zone
The ongoing market correction has caused SOL price to lose 4.61% within the last 24 hours, with a trading volume of $2.265 billion (up 9.53%). The altcoin has also seen a decline of 10.48% over the past week and a steeper 18.90% drop in the last month.
Trading within a narrow range since mid-April suggests a lackluster performance for Solana. A resistance zone above $155 has emerged, indicating strong selling pressure at that level. However, there’s also a positive sign: considerable buying pressure is building near the crucial support trendline around $120, hinting at a potential bullish reversal for SOL.
Mixed Market Sentiments for Solana
The Moving Average Convergence Divergence (MACD) indicator displays a flatline on the price chart, signifying a balance between buying and selling pressure. The neutral trend in the averages further highlights the uncertainty surrounding SOL’s future price movement.
On the one-day timeframe, the 50-day EMA (Exponential Moving Average) consistently acts as resistance for Solana’s price, while the 200-day EMA provides crucial support. This technical analysis presents conflicting signals for the altcoin.
Solana Price Prediction: Bulls vs. Bears
If the market can maintain the SOL price above the critical support level of $127, bulls will regain control and push the price towards the $155 resistance zone. A sustained price at this level would pave the way for an attempt to reach the upper resistance of $181.50 later this month.
However, if bears continue to dominate the market, SOL could plunge towards its crucial support of $127. A failure to hold this level could see the altcoin retesting its $100 low in the coming weeks.
Conclusion
The coming days will be crucial for Solana. While there are signs of a potential bullish reversal, the overall market sentiment and price action remain uncertain. Only time will tell if SOL can reclaim its lost ground and surge towards $180.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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