Tuesday saw Sol through another drop after failing to sustain momentum above $160. While its long-term structure remains bullish, it appears weak on the day as it looks for solid ground to initiate a fresh buy.
Sol’s bullish trajectory remains intact on the long-term perspective but it seemed to have faced hurdles again due to a drop from a key $160 level.
This key level has been a tough resistance for the bulls since the market halted selling in August. Several attempts to break through this level have proven abortive, although it is still looking bullish on the daily chart.
Now that the price is dropping again, we may see a short pullback into the $140 range before regaining momentum. Failure to locate support in the mentioned range could result in a breakdown of the monthly support.
And if that happens, Sol’s sentiment may turn negative as the bears may step back in the market. As mentioned earlier, the drops appear more like a pullback to accumulate for a bigger move. Gauging from that point of view, the bulls are much more likely to regain control on a daily scale.
The next leg up is expected to activate a surge to a three-month high before witnessing another pullback. However, if the mentioned key level continues to pose a threat to the bulls, Sol may remain trapped until it finds a break.
SOL’s Key Level To Watch
Source: Tradingview
As Sol’s price declines again, the potential support level to watch for a bounce is $141. If it fails, the $133 level would be the next support to keep in mind. The $127 and $120 levels are lower support to consider for a crackdown.
Anticipating an upward move, Sol must retake $152.4 with a surge through $160 to $163.5 – marked as two-month resistance. $180 and $195 would be the next area of interest if the price breaks higher.
Key Resistance Levels: $152.4, $163.5, $180
Key Support Levels: $141, $133, $127
Spot Price: $151.3
Trend: Bullish
Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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