Over the weekend, SOL lost the $100 support level turning it into resistance. Unsurprisingly, following the negative sentiment, the price of SOL today dropped to $80.
Key Support levels: $79, $56
Key Resistance level: $100, $130
On Sunday, SOL rejected attempting to break above $100 and, by doing so, confirmed the level as resistance. Earlier today, the price took a nosedive reaching $80 for a short period before a slight recovery.
The $79-80 support will likely be tested again if the buyers do not place orders. However, SOL is extremely oversold right now, and a temperature correction could take place anytime in the next few hours or days.
Technical Indicators
Trading Volume: Selling volume was very high over the past four days, a bad sign for the bulls, but follows the overall market sentiment, along with fundamental reasons regarding the Solana network conjunctions.
IRS: The RSI entered the oversold zone at 20 points on the daily time frame. Such a low RSI level has not been seen since December 2020, which is extremely low. The RSI has rarely stayed at such levels for long.
MACD: The daily MACD has been bearish for almost a week and there are no signs that this condition will end any time soon. Both the histogram and moving averages are making lower lows.
bias
The current bias is bearish. SOL is currently suffering from an extreme selloff, which could trigger a temperature correction towards $100.
Short-Term Prediction for SOL Price
At some point, the sellers will become exhausted and it will be too costly to continue to push price lower in terms of risk/reward ratio. At that point, SOL has a good chance to enter a strong relief rally that can take it back towards $100 or above.
Until that happens, the sellers have the upper hand and the critical support at $79 must hold to reverse this downtrend.
