Solana Price Drops But Returns To $18

Solana long term price forecast: bearish

If the selling pressure continues, the market will retrace and reach the previous lows of $15.61 and $13.02 again.

In the meantime, Solana has completed an upside correction following the Aug. 6 plunge, and a retreating candlestick has tested the 61.8% Fibonacci retracement level. The correction suggests that SOL will fall to the Fibonacci extension level of 1.618 or $18.33. However, price action shows that the altcoin has fallen to a low of $17.78 at the time of writing. SOL /USD is hovering above the current support for a possible reversal.

Solana price indicator analysis

The cryptocurrency has reached bearish exhaustion at the 31 level on the 14-period relative strength index. The altcoin has approached the oversold zone of the market. Similarly, Solana is below the level 20 of the daily stochastic. This also indicates that the market is oversold. Buyers could emerge in the oversold zone.

Technical Indicators

Key supply zones: $20, $25, $30

Key demand zones: $10, $5, $1

What is the next move for Solana?

Solana has entered oversold territory and is hovering around $18 support. If the altcoin loses its current support, it will return to the previous low of $15.61. The previous price level is the historical price level from June 28.

As we reported on September 05, on September 1, the altcoin fell to a low of $19.03 before recovering. At the time of writing, Solana is trading at $19.81. 

Disclaimer. This analysis and forecast are the personal opinions of the author and 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.