The overall cryptocurrency market has slumped with Bitcoin’s price crash. BTC has dropped from $48k levels in the past week, testing $39,600. Then, with the increasing buying pressure, BTC, which rose to the level of $45k, again fell sharply with the ban news from China. This time, Bitcoin, which fell sharply from $45k to $40,600, caused the altcoin market to fall further.
While most altcoins were testing critical support levels, Solana slumped from the $170 levels to the $120 lows. Leftana Breaks the Downing Wedge Upwards! SOL entered a downtrend after rising to the all-time high of $216. The altcoin has lost close to 50% since its ATH. With the recent price drops in Bitcoin, the altcoin, which fell to the level of $120, is trading at a critical level at the time of writing. SOL has gained close to 15% in the last 24 hours. Additionally, it is trading at $138 at the time of writing.
A descending wedge formation is observed on the altcoin’s chart. This pattern is generally observed before an uptrend. However, at the time of writing, the downtrend may have ended for SOL, which is traded at the upper line of this descending wedge. The first support level for Solana is at the $125 level in the downward price movements. With sustainable closes below this support level, a sharp decline towards the $100 levels can be observed.
However, in such a price movement, an upside reaction will be likely from the lower line of the descending wedge. Technical Indicators for SOL Stand Positive! The Relative Strength Index is hovering near the middle line. This shows that the downtrend of the altcoin will end when the RSI rises above the 50 level. Green signal bars close to the half line were observed in the MACD histogram.
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