Collapse turns into quick downward move for Solana
SOL/USD has been trading at a significant long-term low since this morning as it suddenly finds its price close to the values seen in August 2021.
SOL/USD suffered a rapid and potentially painful decline for speculators who saw the price action go against their long positions. The vast cryptocurrency market was extremely jittery with strong selling also being demonstrated.
However, Solana’s decline is among the largest among major cryptocurrencies. SOL/USD was trading near a value of 158,000 on the 13and of January. This morning, Solana’s price is hovering below 87,000. The drop isn’t quite 50% in the past ten days, but to also say it’s been steep would be an understatement.
This weekend’s price action on SOL/USD did not reassure traders who tried to look for reversals to the upside. Speculators who believe Solana has been oversold may prove correct in the medium to long term, but current conditions are extremely jittery and the fact that SOL/USD has entered a price range not seen since August 2021 is a troubling signal. .
During the first week of November, SOL/USD was able to trade near the 260,000 mark. The loss in value that SOL/USD has suffered since then is still considered extravagant in the ever-volatile world of cryptocurrencies. Significant support near the 86,000-85,000 levels should be watched by traders carefully. If the levels prove vulnerable and see sustained trading below, speculators may believe the 80,000 ratio is a target.
Bullish traders who are not afraid of selling and who believe bullish action will develop should consider the idea that the downtrend has been strong and that timing reversals could prove very dangerous if they use leverage. The 80,000 mark, if flirted by SOL/USD, could prove to be a wild inflection point and trigger some quick trading results. Should this important conjuncture prove vulnerable, traders may believe that mid-August 2021 values near the price of 68,000 could be a legitimate target if a downward trajectory remains intact.
The general market action in cryptocurrencies remains quite jittery. If Solana and its major counterparts continue to face headwinds, traders could be forced to increase their sales to try to pocket any semblance of profits they might have left if they were long-term crypto holders. .. Speculators should be cautious under current conditions. Selling SOL/USD using sound risk management can prove to be a bet worth pursuing by aggressive traders, but their price targets should remain realistic as reversals are always part of the trading landscape. short-term bets.
Solana’s short-term outlook
Current Resistance: 89,900
Current support: 84,900
High target: 98,820
Low target: 71,870