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The price of Solana (SOL) has fluctuated against Tether (USDT). This causes many difficulties for beginners. Despite showing such strength, the price of Solana (SOL) has risen from $30 in recent weeks to around $45. Many investors expect more price relief rallies to around $60. Solana (SOL) price was rejected from that level and continued to decline without a significant recovery. (Data from Binance)
Solana (SOL) price analysis on the weekly chart
SOL’s price dropped from $250 to about $30, down more than 70% from its all-time high. After hitting a weekly low of $32, the SOL price rose to $45. This indicates the strong expectations of many investors for a rebound to the $60 level, but the price was rejected.
On the weekly chart, SOL price has formed a bearish trendline. However, the price of SOL was rejected from the resistance of the trendline after a while and it was unable to break this trendline.
SOL is trading above the critical support level of $30; the price of SOL must remain above this level to avoid falling to $24-$20. If SOL price holds this support level, investors can trade higher to the $35 zone. A break below $30 signals a return to the lower demand zones and the reluctance of the bulls to enter buy orders.
To continue the uptrend, the price of SOL must break through and hold above the resistance level of the trendline that is preventing SOL from rising. If the SOL price continues to reject the resistance of the trendline, the price may fall as there are more sell orders than buy orders.
The weekly resistance level for SOL price is $45.
The weekly support level for SOL is $30.
Price analysis of SOL on the daily chart (1D)
The daily sol price timeframe continues to deteriorate as the price breaks the decline, and ranges from the $45 resistance to the $30 support level.
The price of SOL had to break out of this range in significant volume to restore the price level and bail out most investors. A break and close below $30 will not be good for the SOL price structure as the price will face more sell orders and panic market sentiment. If the price of SOL breaks out and closes above $45, we could see a slight bearish movement in the $60-$80 range.
The Relative Strength Index (RSI) gives SOL above 40 on the daily chart, indicating more sell order volume.
The daily resistance level for SOL price is $45.
The daily support for SOL prices is $30.
