Solana Reaches Key Support Amid Bitcoin Decline

Solana Reaches Key Support Amid Bitcoin Decline


By Jakub Lazurek

16 Jun 2024 (26 days ago)

2 min read


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.

Go back to All News
Previous article

Meme Coin Investors Lose Hope in BONK

Meme Coin Investors Lose Hope in BONK
Next article

Shiba Inu Announces SHIB Eternity Game

Shiba Inu Announces SHIB Eternity Game