As the ongoing crypto market crash intensifies the retest in Solana prices, buyers struggle to hold prices at $170 amid a recent 4% intraday drop.
Amid the broader market correction, the intense surge in supply wave liquidates $157M worth of long positions in the last 12 hours. Ethereum is taking the biggest hit, with $100M worth of bullish positions liquidating in the last 24 hours. Amid this, the Ethereum-killer, Solana, shares a similar fate with almost $10M long positions wiping out as SOL drops to $170.
Despite the bearish influence over the market, top analysts and the price action analysis offer a potential bounce back. Will Solana survive the market crash to top $200 in 2024?
Solana Clings To $170 As High Supply Retest Warns Failed Breakout
Despite forming two massive bullish candles to break a resistance trendline, the broader market fallout could result in a failed uprising in Solana. In the weekly chart below, the surprising 40% surge in two weeks fails to sustain momentum as it drops 7% this week.
As seen in the chart, Solana is currently in the retest phase. However, a lower price rejection is visible on the chart, but the crashing prices now warn of a failed breakout.
Currently, Solana trades at $171 with an intraday drop of 4.20%. Further, the piercing bearish candle is a product of the FUD crash and warns of slippage under the broken trendline.
Negating the breakout, the downfall could potentially result in an intense, extended correction that might lose the $150 psychological mark.
As per the momentum indicators, the MACD and signal lines are ready for a bullish crossover to support the breakout rally. Meanwhile, the daily RSI line sustaining above the halfway line reveals sufficient demand.
Recovery Chances Visible on Smaller Timeframes for Solana
In the 4H chart, the SOL trend breaks under a long-coming support trendline with a massive 4.19% drop. Undermining the previous day’s surge, the bearish engulfing candle now tests the 50D EMA and the $169 support zone.
Currently, Solana forms a green Doji candle at a critical support area, increasing the chances of a bounce back to retest the broken trendline. However, a relief rally in the broader market could fuel the bounce back in Solana to surpass the $180 mark.
Will SOL Price Recovery Head to $200?
The market-wide correction spree is causing additional stress over altcoins, which has led to Solana crashing to $170. However, multiple bullish elements holding the fort to avoid further correction increase the likelihood of a reversal.
As per the Fibonacci levels in the weekly chart, the post-retest reversal rally could pump Solana to surpass the 78.60% Fib level at $198. Thus, the next potential target for SOL is $198 and $249.
Conversely, if the intense supply results in a failed breakout run, the next support levels are at $162 and $155.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
