As the crypto market signals weak signs of stabilization after a massive overnight crash, altcoins like Solana (SOL) are aiming for a bouncing back. The total crypto market cap, excluding Bitcoin, has risen back to $1.17 trillion after momentarily testing the $1 trillion valuation.
Among the rising altcoins, Solana marks a significant lower price rejection. The so-called Ethereum killer has bounced back from the 24-hour low at $176 to the current market price of $195.
After losing its $200 psychological support during the market crash, the minor support at lower levels hints at a potential recovery for Solana.
Solana Price Analysis Reveals Major Support Under $200
In the daily chart, the SOL price trend has created four continuous bearish candles, accounting for a price drop of nearly 20%.
After failing to cross above the 78.60% Fibonacci level at $239, Solana is now testing the 23.60% support level. The lower price rejection retests a broken resistance-turned-support trendline and the 200-day EMA level.
Furthermore, the Solana price has retested the crucial support near the $175 mark, with the low price rejection reflecting strong demand at lower levels. The downfall has created a downtick in the 20-day EMA, increasing the chances of a potential negative crossover in the average lines.
The daily RSI line has taken a negative route, crossing under the halfway level. As the momentum indicator nears the oversold boundary line, the technical indicators are on the verge of flashing a sell signal.
Based on the Fibonacci levels, the bullish reversal in Solana could come post-retest of the broken trendline support. The strong resistance for Solana now stands at the 50% Fibonacci level at $216.
Analyst’s Take: TD Sequential Flashes Buy Signal for SOL
Despite the growing bearish influence on the daily price chart, Martinez Ali, an independent crypto analyst, maintains an optimistic viewpoint on Solana. In the growing market chaos, Martinez highlights the TD Sequential indicator generating a buy signal on Solana.
Adding to the significance of this buy signal, the indicator is triggered on the daily time frame. This significantly improves the chances for Solana as the lower price rejection increases.
Conclusion: Is Solana Ready for a Reversal?
In conclusion, strong lower price rejection and the TD Sequential buy signal signal potential short-term recovery in SOL prices. Hence, a sustained move above the $200 psychological mark could trigger a rally toward $216. However, a failure to hold the fort at $175 could slip Solana down to $150.
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