Solana Corrects Above $120, But Threatens To Fall Further

The price of Solana (SOL) has fallen to the bottom of the chart twice before rising again.

SOL price long-term forecast: bearish

According to the price analysis by Coinidol.com, the cryptocurrency had fallen as low as $125 and $131 before correcting higher. The 21-day SMA has withstood the upward correction twice and the price indicator predicts a further decline to the Fibonacci extension level of $1.618 and $117.72 respectively. 

Solana is trading below the moving average lines but above the $120 support. Selling pressure will return if the $120 support is broken. The altcoin is currently correcting upwards to retest the 21-day SMA. The uptrend will resume its upward movement if the 21-day SMA is broken and the upward momentum continues. The current price of Solana is $143.

Analysis of SOL price indicators 

After the rejection of the 21-day SMA, the price bars are below the moving average lines. The downward trend of the horizontal moving average lines indicates a falling trend. The price bars on the 4-hour chart are trapped between the moving average lines. Solana will have to spend several days in this area.

Technical indicators

Key supply zones: $220, $240, $260

Key demand zones: $140, $120, $100

What's next for Solana?

Solana is correcting upwards after investors bought the dips above the $120 level. However, the appearance of doji candlesticks has slowed and limited the price movement. The altcoin will trade below the moving average lines and above the $120 support until the trend is established.

Disclaimer. This analysis and forecast are the personal opinions of the author. They are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol.com. Readers should do their research before investing in funds.