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Solana (SOL) collapsed 42% last week, reaching an important and final support level at $15. If this level is broken, the price may fall even more
The SOL price is currently at the last support level of the Golden Ratio. During the last tumultuous week for the crypto market, the native token of the Solana project became the biggest loser among the top 10 largest cryptocurrencies by market capitalization, falling by about 42%.
This is a perfectly understandable dynamic, since the U.S. Securities and Exchange Commission () in its lawsuits called BNB, Cardano, Solana and Polygon securities. Following that, the online broker said it will remove from the listing altcoins ADA, MATIC and SOL amid claims of the SEC to Coinbase and Binance.
Solana is at the last level of Golden Ratio support
SOL is the native token of the blockchain Solana, created by Anatoly Yakovenko. It uses a unique consensus mechanism, which is a combination of Proof-of-Stake (PoS) and Proof-of-History (PoH) algorithms.
<As the results of technical analysis show, despite last week's massive collapse, the cryptocurrency showed resilience, managing to push back and close above the Golden Ratio support around $15 by the end of the same week.
Source: TradingView
If SOL starts a recovery, it will face the next significant Fibonacci resistance levels at $16.4 and $19 respectively.
If Solana makes a bearish break-down of that support, the next significant support is between $8 and $11.. This means that the coin’s downside potential is 27.7%.
In the meantime, the MACD indicator has been declining for several weeks. The MACD lines could bode for further bearish price dynamics in the near term.
In general, SOL shows a very bearish trend, but there is still a chance that the Golden Ratio support at $15 will hold.
On the whole, SOL shows a very bearish trend, but there is still a chance that the Golden Ratio support level at $15 will hold.
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How low can the SOL price go
If Solana continues its bearish trend and breaks the next support level, which is roughly between $8 and $11, the next significant support could be highlighted in the $3.84 to $5 area.
Source: TradingView
Significant Fibonacci level resistance remains around $27. It is a level that offered strong resistance to the price earlier in the year.
<For a bullish reversal of the trend, SOL would need to break through the $103 and $163 Fibo levels, which are still a long way off.
<Therefore, the continuation of the downtrend in the mid-term is more likely.
Indicators of the daily chart are also showing bearish signals
While problems persist, there is still a glimmer of hope for an uptrend in the Solana, provided the price holds above Golden Ratio support at $15.
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But the daily chart indicators paint a bearish picture. It exhibited a “Death Cross/Death Crossing” formation where the exponential moving averages (EMAs) are crossing in such a way that it indicates a potentially bearish market in the short- and medium-term.
More importantly, the MACD indicator has declined as part of a bearish pattern and the MACD lines have also formed a bearish crossover.
Source: TradingView
In the meantime, the RSI has reached the oversold area, after which the price may rebound in the short term. However, RSI does not yet indicate a bullish divergence.
Death cross appeared on the 4-hours chart
There is also a “Cross of Death” on the 4hour chart, which further strengthens the thesis of a short-term bearish trend.
This formation occurs when the short-term moving average intersects the longer-term moving average from top to bottom. This signals a potential bearish trend and is often seen by traders as a negative indicator of further possible price declines.
Source: TradingView
<However, the MACD lines have crossed in this chart, which indicates a bullish momentum and the MACD is slightly higher, which indicates a bullish activity. As for the RSI, it remains in a neutral range at the moment.