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With a failed rising channel and a third consecutive bearish day, can Solana (SOL) maintain support at $159?
Solana has faced a significant decline as the cryptocurrency market witnessed a 3.8% drop to $2.33 trillion again this week. The fifth biggest cryptocurrency in the industry witnessed a 5.05% drop in the past 24 hours, with its cap falling below $78 billion.
Solana is currently trading at $165.61 as the broader market volatility warns of a bearish continuation. Will Solana survive the market crash conditions for a bounce back this week?
Another Retest of $159?
On the daily chart, Solana’s decline has extended to the third day of correction, with a 9.50% drop from a seven-day peak of $183.30 to its current market price. This marks the third consecutive bearish candle, featuring an intraday pullback of 1.48%.
The downtrend has breached the 61.80% Fibonacci level at $169.49. Despite an inverted head-and-shoulder breakout, Solana’s price action has failed to sustain momentum and is now heading toward the 50% Fibonacci level at $159.54.
Solana Price ChartThe growing bearish influence is reflected in the MACD and signal lines, which are showing a bearish crossover. However, the simple moving averages remain positive, buoyed by a recent golden crossover between the 50-day and 200-day SMAs.
Solana’s Failed 4-hour Rising Channel
On the four-hour chart, a sudden decline has led to pronounced bearish price action. Solana has broken below a long-standing support trend line of a rising channel pattern.
This marks the end of the short-term correction rally and warns of a downfall to the 200 EMA in the four-hour chart at $156.62. Meanwhile, two crucial supports for Solana stand near the $158 support zone and the $150 support zone.
Will Solana Survive the Market Crash?
Last week, Solana witnessed a lower price action from the $158 support zone, increasing the possibility of a quick turnaround. Meanwhile, the altcoin also finds quick support near the $165 mark, which has supported the Solana price since October 21. In case of a bullish turnaround, a potential retest of a broken trend line in the four-hour chart is possible.
In the longer term, if Solana stages a comeback 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 $200 psychological mark may also be within reach for Solana.