Solana SOL Eyes Key Support At $31, Will It Survive The Next Leg Down?

Solana SOL trades below $35 against Tether (USDT) after flipping its support into resistance in recent weeks. The price of BTC failed to sustain its bullish structure as it breaks below key zones, this breakdown in prices affected other altcoins like Solana leaving investors confused as to where the market is headed.

Solana (SOL) Price Analysis On The Weekly Chart Weekly SOL Price Chart Analysis | Source: SOLUUSDT On Tradingview.com

From the chart, the price of SOL saw a weekly low of $31, which bounced from that area and rallied to a price of $44 after showing great recovery signs in recent weeks. 

SOL’s weekly candle closed with a bullish sentiment with the new week’s candle looking bearish showing signs of weakness after being rejected from $44.

The price has struggled to gain traction as it attempts to hold key support.

If the price of SOL on the weekly chart maintains this structure, it could quickly return to $31, which serves as key support. To avoid falling below $20, the price of Bitcoin must hold this support zone.

Weekly resistance for the price of SOL – $44.

Weekly support for the price of SOL – $31, $20.

Price Of SOL On The Daily (1D) Chart Daily SOL Price Chart Analysis | Source: SOLUUSDT On Tradingview.com

With more sell orders, the price of SOL broke to the downside of a wedge, causing SOL to break its uptrend support.

To avoid panic selling, SOL’s price needs to bounce and form support above.

The price of SOL has shown strength in holding this support; if bulls step in, the price of SOL could trend higher to a region of $38 acting as resistance.

SOL is currently trading at $34.7, just below the 50 Exponential Moving Average (EMA), which corresponds to a price of $40.

On the daily chart, the Relative Strength Index (RSI) for the price of SOL is below 35, indicating sell orders.

The volume on the daily timeframe suggests more sellers, if bulls steps in this would be good for SOL price.

Daily (1D) resistance for SOL price – $38.

Daily (1D) support for SOL price – $31.

Price Analysis Of SOL On The Four-Hourly (4H) Chart Four-Hourly SOL Price Chart Analysis | Source: SOLUUSDT On Tradingview.com

The price of SOL has maintained a bearish structure below the 50 and 200 EMA prices, which correspond to $40 and $38 respectively and act as resistance for SOL price.

If SOL fails to hold the $31 support level, the price may retest the $28 and lower support levels as the next support level.

Four-Hourly (4H) resistance for SOL price – $38, $40.

Four-Hourly (4H) support for SOL price – $31, $28.

The price of SOL holding above $31 is good on high timeframe to avoid panic selling.

Featured Image From Coinage, Charts From TradingView.com