With a failed ascending channel and a third consecutive bearish day, can Solana (SOL) hold support at $159?
Solana has seen a significant drop as the cryptocurrency market has once again seen a 3.8% drop to $2.33 trillion this week. The fifth-largest cryptocurrency in the industry has seen a 5.05% drop in the last 24 hours, with its market cap falling below $78 billion.
Solana is currently trading at $165.61 as market volatility warns of bearish continuation. Will Solana survive the market crash conditions to rebound this week?
Another retest $159?
On the daily chart, Solana’s decline extended into a third day of correction, with a 9.50% drop from its seven-day peak of $183.30 to its current market price. This marks the third consecutive bearish candlestick, showing a 1.48% intraday retracement.
The downtrend broke the 61.80% Fibonacci level at $169.49. Despite the inverse head and shoulders breakout, Solana’s price action failed to sustain the momentum and is now moving towards the 50% Fibonacci level at $159.54.
The growing bearish influence is reflected in the MACD and signal lines, which show a bearish crossover. However, the simple moving averages remain positive, supported by the recent golden crossover between the 50-day and 200-day moving averages.
Solana’s Failed 4-Hour Rising Channel
On the 4-hour chart, the sudden decline has resulted in pronounced bearish price action. Solana has broken below the long-standing support line of the ascending channel trend.
This marks the end of the short-term corrective rally and warns of a fall to the 200 EMA on the 4-hour chart at $156.62. Meanwhile, two important supports for Solana are near the $158 support zone and the $150 support zone.
Will Solana Survive the Market Crash?
Solana has seen lower price action from the $158 support zone in the past week, increasing the likelihood of a quick reversal. Meanwhile, the altcoin is also finding quick support near the $165 mark, which has supported Solana’s price since October 21. A potential retest of the broken trendline on the 4-hour chart is possible in the event of a bullish reversal.
In the long term, if Solana retraces from the 50% Fibonacci level at $159.54 on the daily chart, potential price targets could be $169.49 and $188.65 in the short term. By the end of the month, the psychological $200 mark could be within reach for Solana.
