Solana price aims for $9 as bears make their presence known
- Solana price fell by 8% from the previous week.
- SOL has yet to retest three significant moving averages during this year’s downtrend.
- A breach above last week’s trading range is needed to consider a retracement into the breached moving indicators.
Solana price is undergoing a persistent bearish stronghold. Last week’s 8% downswing brought the yearly decline to 93%. Now it appears the bears are aiming for new yearly lows.
Solana price in a strong downtrend
Solana price finally resolved the confusion about SOL’s congestive price action witnessed throughout the fall. On December 15, the centralized smart-contract token pierced the south side of the $12-$14 trading range and produced a 10% loss of market value. Solana’s price has since struggled to retaliate and gain re-entrance to its’ lost levels of support.
The SOL price currently auctions at $12.09. Since the start of the year, SOL has progressively lost interest from bulls hanging out at nearly all expected target zones. At the time of writing, the 50-day, 100-day, and 200-day simple moving averages each hover above SOL’s current price. Classical technical analysis would suggest that the Solana price is in a true downtrend, and trying to catch a knife could lead to a lethal loss of capital.
SOL’s daily trading price lies 40% beneath the closest simple moving average (the 50-day SMA). The bull’s failure to retrace into the aforementioned moving average, following a month-long bout of consolidation, is telling of the bears’ underlying strength on the market.
On February 15, during the 2021 bullrun, SOL witnessed a 20% market decline after piercing the $9 barrier. Because SOL hovers just above the newly established yearly lows at $10.94, considering historical key levels is a justified idea for bear market target zones. A breach of the $9 liquidity level would result in a 25% decline from the Solana’s market value.
SOL/USST 3-Day Chart
Based on the previous bearish outlook, A break above the previous week’s swing high is needed to consider aiming for higher bullish targets. A hurdle above the level would invalidate the bearish bias creating the possibility for a spike into the 50-day SMA at $17 for a 40% gain.