Solana in Free Fall: SOL in Bearish Breakout Formation

Solana Dropping, SOL in a Bear Breakout Formation
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Solana (SOL) prices are steady when writing but remain under pressure, looking at events in the daily chart. Even though buyers are optimistic about what lies ahead, the failure of price action to reverse recent losses means the trend is still under the influence of determined bears.

The immediate resistance level is around $22, while support is at $19.40, marking last week’s lows. Going forward, how price action pans out depends on how prices react at these local reaction levels.

Any break below last week’s lows may see SOL crash towards June 2023 lows in a retracement, peeling back gains of June to July 2023.

NFTs and Adoption

Amid this development, there have been solid fundamental events in the past few trading weeks. Going by reports, CNBC dropped Bitcoin Cash and Litecoin and opted to cover Solana news, a massive endorsement for the smart contract platform.

This move means that hundreds of thousands, if not millions of CNBC viewers, will learn about SOL and the influence of Solana in the crypto landscape.

Although SOL prices remain under pressure, there are exciting developments regarding on-chain activity, especially in the non-fungible token (NFT) scene.

Solana is now one of the most active networks for minting NFTs, considering the network’s scalability and low fees.

Beyond this, Solana Pay, a payment solution by Solana Labs, is actively being adopted. Last week, Shopify, one of the world’s largest e-commerce platforms, adopted Solana Pay among its payment methods, joining Circle, the issuer of USDC, in Shopify’s blockchain adoption initiative.

Solana Price Analysis

Solana daily chart for August 28

Solana is edging lower, looking at price action in the daily chart, and SOL is within a bear breakout formation.

There are hints of strength with the series of higher highs relative to the lower BB, looking at the candlestick arrangement in the daily chart. For the trend to shift and buyers to stand a chance, there must be a conclusive close above $22 with rising volumes. This reaction line coincides with the 61.8% Fibonacci retracement level of the June to July 2023 trade range.

If so, SOL may resume the June to July 2023 trend, with buyers targeting $32 in the medium term.

Since SOL is consolidating in lower time frames, conservative traders can wait for trend definition. Any drop below $19.4 with expanding trading volumes may see SOL retest June 2023 lows at around $14.40.

Technical charts courtesy of Trading View.

Disclaimer: The opinions expressed do not constitute investment advice. If you wish to make a purchase or investment we recommend that you always conduct your research.

If you found this article interesting, here you can find more Solana news.


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