Solana price may collapse if it fails to gain a foothold above the $20 horizontal support level. On the other hand, a breakdown of the long-term resistance line will accelerate the growth rate of SOL
SOL is a native token of the Solana blockchain, created by Anatoly Yakovenko.
It uses a unique consensus mechanism that is a combination of Proof-of-Stake (PoS) and Proof-of-History (PoH) algorithms.
After reaching an all-time high of $259.90 in November 2021, the price of the asset fell below a long-term descending resistance line..
In March 2023, the SOL rate bounced off it again. However, now the market has again gone to storm this obstacle.
As the results of the weekly chart technical analysis show, in addition to this resistance line, SOL is also trading below the $27 long-term resistance area..
This area was strengthened when the price made a year high of $27.12 here.
And finally, the weekly RSI is trading below 50 and falling. This is considered bearish and indicates a long-term downtrend..
In the event of a bearish breakout, the next immediate support will come into play at $12.70.
Daily chart outlines mixed outlook for SOL for April. The price is holding above the $20 horizontal support, but it has already dipped to this level three times, making lower highs in the process..
This can be regarded as a sign of weakness, promising a bearish breakout for the token. Earlier, the market made a bearish breakout from a short-term ascending parallel channel..
Since such channels are usually associated with corrective moves, the broader trend for the token is likely bearish.
However, yesterday the SOL began to rise and formed the first rising low after the breakout.. In addition, the daily RSI rose above 50.
Meanwhile, wave analysis suggests that the price has been in the ABC corrective structure since February 20 and the coin rate may fall to $12.13-$12.86.
This target zone was highlighted using the Fibo 0.786 retracement (white) and it gives an A:C wave ratio of 1:1 (black).
Also here is the long-term support area of $12.70. This makes these levels very likely to form a bottom.
On the other hand, the absorption of the high of wave B at $23.92 (red line) will signal a bullish trend and may cause SOL to rise to $27.
