- SOL price has hovered lower within the last nine days.
- Solana saw massive buying as it neared a strong support floor.
- Buyers seem to step up at the new 3-month lows.
Solana’s (SOL) price has gone against bulls’ expectations of late. The last nine trading days saw the altcoin losing almost 30% from the peak of $203.75. Nevertheless, the buying momentum at lower levels appears to overpower the selling strength at SOL highs – a possible sign that Solana found support.
SOL Price Secures Possible Support Near $144, and Buyers Inventors Anticipate new Highs
SOL has discovered a reliable support level at $144. The value area contains weekly Kijun-Sen and 2021 Volume Profile’s 2nd-largest high volume node. Moreover, the Weekly Kijun-Sen remained somewhat flat for long, adding weight to the support strength.
According to the oscillators, the RSI tests the initial oversold region in a bullish market (50). The Relative Strength Index has never tested 50-level since 16 July 2021. The test comes as SOL price stands on a significant support zone that is highly positive for Solana bulls.
Meanwhile, Composite Index is the most crucial oscillator. There’s a concealed bullish divergence between Composite Index and the candle chart. Hidden bullish divergence happens when an oscillator forms lower or equal lows while price creates higher lows.
Furthermore, the Composite Index touched a new record low. For now, enthusiasts await a massive bounce from the $140 – $150 zone. The rebound will clear the way towards the value area of $200.
Meanwhile, a daily or weekly close beneath the Kijun-Sen near $140 will invalidate any short-term bullish outlook for SOL price.
Keep in mind that the crypto market trades in a bloodbath at the moment. The early Thursday crash saw top tokens losing their critical levels. For instance, BNB has lost its 3rd position after a massive drop, ranking fourth at the moment. Also, Bitcoin crashed to levels seen during the early December sudden plummet. While publishing this post, BTC traded around $42,900.
What are your views on the current crypto price reactions? When will the market recover? You can leave a reply below.
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