Key Support Levels: $118, $100
Key resistance level: $136
The price action took a sharp turn once it hit the resistance at $136 and SOL has been unable to recapture this level ever since. With this in mind, the next major support to watch is found at $118, and Solana is rapidly closing in on it at the time of writing.
Chart by TradingView
Trading Volume – SOL had excellent buying volume during its rally, but has since tapered off, allowing the bears to take control of the price action.
RSI – The RSI reached almost 80 points at the height of the rally, but is now rapidly moving away from the overbought area (>70 points).
MACD: The daily MACD is bullish, but the histogram shows lower highs. This indicates a loss of momentum, and this pullback can push the price back to support.
Chart by TradingView
The current bias is neutral. It is important to monitor how the price behaves at the next support to assess future possibilities.
Short-term prediction for the SOL price
The bulls appear to be exhausted and were unable to push prices above $136. For this reason, it is reasonable to expect the first support level to be reviewed in a relatively short period of time.
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive) – Use this link to sign up to receive $100 free and 10% off Binance Futures first month fees (terms).
PrimeXBT Special Offer: Use this link to sign up and enter the code POTATO50 to receive up to $7,000 on your deposits.
Disclaimer: The information found on CryptoPotato is that of the cited writers. It does not represent CryptoPotato’s views on whether to buy, sell or hold investments. You are advised to conduct your own research before making any investment decisions. Use the information provided at your own risk. See the Legal Notice for more information.
Cryptocurrency charts from TradingView.
This post SOL sheds 9% overnight, this is the support to watch
was published first on https://cryptopotato.com/solana-price-analysis-sol-dumps-9-overnight-this-is-the-support-to-watch/