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Solana (SOL) Should Recover Latest Losses to Avoid 35% Crash

  • The 20 January flash crash had SOL dipping in the demand zone at $115.51 – $144.70.
  • Meanwhile, a recovery beyond $135.71 will see Solana alleviating the bearish picture regardless of the latest fall.
  • A move beneath $115.51 will form a lower low, catalyzing a 35% drop towards $78.76.

Solana (SOL) witnessed a crash during the 20 January session. That had the altcoin violating two critical barriers. Nevertheless, Solana is yet to create a lower low on the higher timeframe, showing buyers preventing further losses from the crypto.

SOL Price at Break or Make Point

Solana’s price experienced a 16% crash within 24 hours. That had it slicing through 200-day SMA near $140.54 and the weekly support floor around $135.71. Surprisingly, bullish strength cushioned the development as the crash happened within a daily demand region, extending between $115.51 and $144.70.

A breakdown from the mentioned demand region might form a daily candle close beneath $115.51. That would produce a lower low, suggesting potential downward movements by SOL price. Nevertheless, the altcoin currently hovers within the demand region and prints recovery chances.

A 24hr candle close beyond the weekly support barrier near $135.72 and preferably past 200-day Simple Moving Average of $140.54 will highlight buyers’ resurgence. That way, Solana might retest 50-day SMA, matching the daily supply territory in the $169.79 – $179.19, translating to a 33% upswing.

A daily candlestick close under $115.51 by Solana will trouble the bulls. Such a development will formulate a lower low, annulling the bullish outlook. The actions will indicate a bearish attitude by the asset, clearing the toad for a 35% fall. That way, SOL will head towards the daily demand region that extends between $65.91 and $78.76.

For now, Solana requires a recovery move past $135.71 to alleviate downside potential. Meanwhile, the altcoin will rely on overall market conditions for its upcoming actions. On the other side, the global crypto spectrum flashed massive bearishness within the past day. Bitcoin plunged beneath the 40K mark, hovering near $38,784. With that, the global market capitalization saw a 7.5% drop within the past day, wavering at $1.83 trillion. Such conditions might lead to lows from SOL.

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