Chart by TradingView.
SOL’s price nosedived in the past two days as the selling pressure intensified.
Key Support levels: $17
Key Resistance levels: $20
SOL’s price crashed after the news broke out that FTX would aim to liquidate its SOL position. Even if some of those coins are vested and cannot be sold, the news spooked the market. Traders holding a position on Solana were quick to liquidate, and this was reflected in the price that registered a 10% loss compared to last week.
With sellers having full control of the price action, the best hope for Solana is to hold at the $17 support level, which is the most important level at this time. Should that not manage to stop this downtrend, then the price will be more likely revisit $15 next. Such levels were last seen in June.
The 3-day MACD histogram has made a lower low. This is bad news for Solana because it shows that sellers may continue to put pressure on the price and take it lower in the future. The daily RSI may also reach the oversold area if this continues which could trigger a bounce on the $17 level.
The bias for SOL is bearish.
Expect the price to continue down and test the key support at $17. Should that hold, then bulls may have a chance to reverse this downtrend. For now, the market sentiment is bearish, and the FTX news may continue to scare buyers away from SOL.
