Solana Reaches Key Support Amid Bitcoin Decline

Solana Reaches Key Support Amid Bitcoin Decline

BlockchainEconomy

By Jakub Lazurek

16 Jun 2024 (26 days ago)

2 min read

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Analysts suggest a buying opportunity for Solana as it hits a crucial $141 support level amid a sharp decline, potentially signaling a bullish reversal.

Solana’s price has dropped significantly over the past month, hitting a low of $141.3. This decline has brought Solana to a crucial support level, which might indicate a potential upward trend in the next 30 days. Crypto analyst Ali Martinez noted on social media that this support level could spark a bullish reversal for Solana if it holds.

Solana, along with other altcoins, has seen reduced trader attention as Ethereum gained focus following the SEC’s approval of Spot Ethereum ETFs. As a result, Solana’s price fell sharply from $187 to $141 in three weeks, a 24% drop. This decline worsened due to Bitcoin falling below $65,000, which dragged Solana down to test its 200-day moving average support.

Martinez suggests that reaching this $141 support level might signal a price reversal in the short term. The TD Sequential indicator has issued a buy signal for Solana’s SOL on the daily chart, indicating that now could be a good time to buy the altcoin as it starts to rebound.

The TD Sequential indicator counts the number of periods in a trend, with 9 indicating a likely reversal. After two consecutive red candles, SOL appears ready to form a green candle, according to Martinez’s daily chart analysis. This suggests a potential bullish reversal.

However, not all TD Sequential signals lead to sustained uptrends. If Solana fails to stay above $140, it could drop further to the next support at $130. This highlights the risks in trading. Trader sentiment on Solana’s direction is divided. Data from Coinglass shows 49.05% of Solana futures positions in the past 24 hours were long, while 50.95% were short. This split indicates indecision among traders about Solana’s next move.

In conclusion, Solana’s current price action and support level at $141 present a critical moment for the cryptocurrency. Analyst Ali Martinez and the TD Sequential indicator suggest a possible bullish trend if the support holds. However, traders should be cautious of potential declines if Solana drops below $140. Bitcoin’s performance will also be crucial in determining Solana’s price movement in the coming days.

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