SOL Price Dip: Is $124 Next?
Solana (SOL) Price Correction After ETF Rally
Solana (SOL) experienced a short-lived rally to $160 on Monday, fueled by the launch of its first exchange-traded fund (ETF). However, this bullish momentum quickly reversed, with SOL shedding all its gains within 24 hours. This price action highlights underlying technical weakness across various timeframes.
Short-Term Analysis: Key Support and Resistance Levels
- SOL is currently trading near a critical supply cluster between $144.5 and $147.7. Breaking below $144 could trigger a drop to $124, or even lower to $95–$100, where support is significantly weaker.
- The price has failed to sustain itself above the 50-day and 200-day exponential moving averages (EMAs) for over a month. Several bullish break-of-structure formations have not resulted in sustained uptrends.
- A decisive break below $137 would confirm a lower low, signaling a bearish continuation. Conversely, a successful retest of the $145–$137 demand zone, followed by a recovery above $160, would be crucial for regaining upward momentum.
Long-Term Analysis: Bearish Trend and Bitcoin's Influence
The broader trend for SOL remains bearish. The failure to break the $180 resistance level in May has resulted in a descending channel pattern. SOL's price has shown significant sensitivity to Bitcoin's (BTC) price movements, underperforming significantly since January.
A continued bearish trend could lead to a retest of the $120–$95 range. However, a strong daily close above $160 could reverse this sentiment and potentially initiate a bullish trend.
UTXO Realized Price Distribution: A Key Indicator
The UTXO Realized Price Distribution (URPD) highlights key support and resistance zones. The current price sits within a supply cluster of 14.3% between $144.5 and $147.7. Holding above $144 is critical. A breakdown could lead to a retest of lower support zones at $124 (1.58% of supply) and $97–$100 (3% of supply).
Resistance is evident at $157 (5.55% of supply).
Disclaimer: This article does not provide financial advice. Conduct thorough research before making investment decisions.
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