Solana Price Analysis: SOL retests $210 before another drop?

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TL;DR Breakdown

  • Solana price analysis is bearish today.
  • SOL/USD set lower low at $200 yesterday.
  • Retracement to $210 previous support seen overnight.

Solana price analysis is bearish today as we saw a lower low set yesterday, followed by a retest of previous support at $210 as resistance. Likely, SOL/USD will soon be ready to continue lower, with the $190 mark as the next target.

Solana Price Analysis: SOL retests $210 before another drop? 1
Cryptocurrency heat map. Source: Coin360

The market overall saw bullish momentum over the last 24 hours, with Bitcoin up by 2.96 percent. Ethereum followed with a gain of 1.94 percent, while Solana (SOL) is still in the red with a loss of 3.67 percent.

Solana price movement in the last 24 hours: Solana sets lower low, retraces to $210

SOL/USD traded in a range of $200.50 – $217.05, indicating substantial volatility over the last 24 hours. Trading volume has increased by 24.53 percent, totaling $2.72 billion, while the total market cap trades around $63.36 billion, ranking the coin in 5th place overall.

SOL/USD 4-hour chart: SOL retest previous support at $210

On the 4-hour chart, we can see the Solana price action retracing some of the loss seen yesterday as bears prepare for another push lower.

Solana Price Analysis: SOL retests $210 before another drop?
SOL/USD 4-hour chart. Source: TradingView

The Solana price action has seen a recovery over the past days as a strong lower high was set with a quick spike to $240 on the 21st of November. However, since then, bearish momentum has taken over again, returning SOL/USD back along with the several-week bearish trend.

On Monday, we saw a drop to $210, followed by another lower high set at $225. Yesterday, bears took over from there, quickly pushing the market towards the previous low.

Late yesterday, a clean break of the $210 mark followed, with the $200 set as the new low. Since then, we have seen the Solana price retest the $210 as resistance, likely as bears prepare to push the market lower later today.

Solana Price Analysis: Conclusion 

Solana price analysis is bearish today as we expect more downside to follow after a retest of previous support as a resistance. Therefore, SOL/USD should see more downside, with the next major support level located at $190.

While waiting for Solana to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.