Cryptocurrencies

Analysis: Solana Drops 14%, Can Price Remain Above $122?


Solana is struggling, just like the rest of the crypto market. The coin is down more than 14% in the past two days, but is still trading above a key support. Can the coin hold strong here? Let’s take a look at the charts.

Banner Solana 1

How is Solana doing?

To get a good idea of ​​SOL, we need to grab a chart that allows us to look far back in time. This is important to see the strongest price levels. Places where the coin reacted in the past usually remain important for the present.

In the chart above, each candle represents 7 days, and we see two of these levels. These are indicated as blue zones and have caused price changes before. We can leave the upper zone for what it is for now, since it will only become important again when SOL arrives here, but the lower zone is important.

The coin is currently in the middle of that. It has happened before that the coin shot up from this blue level. The last time it even increased by 57%. It would be very nice if this were to happen again.

The zone (between approximately 116 and 144 dollars) is very wide, but that does not mean that it is not important. If you look at the weekly chart, you can clearly see that the price reacts to this. So let’s hope that this will happen again this time.

Upward trend still intact

To analyze the reactions and this zone a bit better, let’s also take a quick look at the daily chart. There, the trend of Solana is also indicated with blue arcs, to show that the coin is still in an upward trend. The coin should make a higher high at this point.

As long as this trend remains intact, there is little to worry about in the long term. For that to happen, the coin should not fall below 122 dollars, which would also keep the price above the important blue zone. Until this happens, you can in principle remain positive about Solana. This does not mean that there is no danger, but a drop to such an important support usually causes a revival.

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