Solana(SOL) May Struggle to Stay Above $200 as Bears Tighten Grip

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As a seasoned analyst with years of experience navigating the tumultuous waters of the crypto market, I must say that Solana’s current trajectory is reminiscent of a rollercoaster ride without the thrill. The persistent price decline over the past few weeks has left many investors questioning whether they should hold on or bail out, much like the classic dilemma of whether to grab a cotton candy or a funnel cake at an amusement park.

Solana’s (SOL) value has been consistently falling over the last several weeks due to the general downturn in the crypto market. At present, it is being traded at $218.76, representing a 8% decrease in price during the last week.

In the midst of continuous declines and minimal demand for buying, Solana (SOL) is under increasing stress and could potentially drop below the crucial $200 mark in the short run, as I will outline below.

Solana Sees Spike in Bearish Pressure

Since November 23, the daily graph of Solana’s price has been fluctuating inside a falling trend channel. This channel arises when an asset’s value oscillates between two sloping lines moving downwards, which typically points towards a bearish market condition. This pattern implies that the price is experiencing progressively lower peaks and troughs, indicating continuous selling pressure.

This graph’s top line indicates resistance points, while its bottom trend shows potential support areas. For SOL, it has encountered resistance at around $230.17 and discovered a supportive floor at approximately $200.60.

Additionally, the drop in SOL’s value during the last several weeks has led it to dip beneath its 20-day Exponential Moving Average (EMA), which is a metric that reflects an asset’s average price over the preceding 20 days, assigning greater importance to recent prices.

When an asset’s price falls below its 20-day Exponential Moving Average (EMA), this suggests a change in trend towards bearishness, meaning that sellers are taking over. After the drop, the 20-day EMA frequently becomes a resistance point, as any attempts to rise above it might encounter selling pressure from traders who see it as an obstacle.

As a researcher, I’ve observed that over the last six days, the price of SOL has found resistance at approximately $227, a level it has failed to surpass thus far.

SOL Price Prediction: Why the $200 Level Must Hold

Increasing buying demand may cause the Solana coin price to approach the $200.60 support point. If the buyers fail to maintain this area, the price might fall down to $187, a level not visited since early November.

If demand increases, there’s a possibility that the SOL coin price could overcome its 20-day Exponential Moving Average (EMA) barrier at $227, move beyond the upper boundary of its downward channel, and aim to regain its previous peak price of $264.

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2024-12-15 11:56