SOLANA (SOL) Stuck Between Key Support and Resistance: Must Overcome This Level To Confirm Trend Change – Expert
In a detailed analysis, Rekt Capital delved into the complex price movements of Solana (SOL). They revealed that in July, SOL successfully broke above its blue diagonal, indicated by a dotted line, and saw a notable uptick in price. Despite this rally, it encountered resistance at a former major demand area, which now appears to have shifted into a new supply region, marked in purple.
Rekt Capital emphasizes that the most critical aspect to note is SOL’s Monthly Close below the black level of approximately $23.89. Despite achieving new yearly highs, SOL failed to sustainably break its 2023 yearly highs. In technical terms, this means that the major resistance set earlier in the year at $23.89 was not overcome on a Monthly timeframe. The price action in July merely resulted in a wick, suggesting a lack of sustained upward momentum.
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Show more +At present, SOL is forming a trading range between the orange Range Low support and the black $23.89 Range High resistance. As long as the Range Low holds as a support level, there is potential for intra-rangebound behavior, which could see SOL retest the Range High resistance. However, the next significant trend will only materialize once either the Range Low breaks down or the Range High is sustainably breached. In the latter scenario, the price would need to reclaim the black level as new support to confirm a breakout.
Importantly, Rekt Capital also notes that the longer this current range continues, the less likely it becomes a range of re-accumulation. The chances of this range serving as a distribution zone increase as the price maintains its sideways movement over time.
Risk of Further Price Drops as FTX Prepares for Asset Liquidation
As the cryptocurrency exchange FTX navigates through bankruptcy proceedings, market volatility and uncertainty have escalated. Solana (SOL) has been especially impacted, experiencing a nearly 9% price drop within the last 48 hours, fueled by the spread of market rumors and FUD (Fear, Uncertainty, Doubt).
FTX is scheduled to appear in court on Wednesday, September 13, seeking approval to liquidate billions in cryptocurrency assets, Solana among them.
This situation has heightened concerns across the Solana market, with analysts and participants increasingly worried that the potential liquidation could exert significant downward pressure on an already shaky market.
The analyses presented offer valuable insights for anyone trading or investing in SOL, aiding in the understanding of its current market trends.
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