With FTX liquidity issues rising again, the news directly affects SOL price, leading to a breakdown. Falling 6% in a day, the threat of SOL being dumped increases the threat of Solana’s price returning to a single-digit value.
However, the recent recovery rally teases an otherwise situation.
With the sideways trend following the early 2023 bull run of 170%, the Solana coin price dipped to the $13.81 support level, aligning with the 23.60% Fibonacci level. Following this dip, the Solana coin price formed a support trendline and bounced back to the $27 mark.
However, the recent crash in the crypto markets brought the Solana coin price down under $20. This correction phase led to a falling channel pattern in the daily chart and put out the hopes of a golden crossover as the 50- and 200-day EMAs regain the bearish alignment.
Currently trading at $18.72 with an intraday growth of $1.74, the daily candle exceeds the 50% Fibonacci level. Moreover, the recent price action displaced the V-shaped reversal in the Solana coin price after finding support from the base of the falling channel.
Hinting at a potential upcycle within the bear channel, the uptrend can cross the $20 mark. Coming to the technical indicators, the RSI indicator mimics the price action and shows a reversal from the oversold boundary. Meanwhile, it gives rise to a bullish divergence. On the other hand, the MACD indicator displays a positive crossover on the charts.
Considering the uptrend gains momentum, the positive cycle can reach $30, giving the channel a bullish breakout.
On the flip side, a steep correction to $15.50 is possible if the prices fail to sustain above $18.
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