Solana price joins Bitcoin price slide as SOL flirts with break below $20 for 10% decline
- Solana price dives below $22 as the 55-day SMA sees price action slip away.
- SOL nosedives together with other crypto and blockchain currencies in a global sell-off.
- The decline could hold the risk that SOL slides back into a bearish pattern.
Solana (SOL) price says goodbye to the crucial 55-day Simple Moving Average (SMA) as bulls cannot hold on to it. In a synchronized move, several major cryptocurrencies and altcoins are trading lower as turmoil worldwide and in several asset classes such as banking picks up. Expect SOL to slide below $20 and be in danger of entering a bearish triangle formation.
Solana price falling 10% is not the issue but rather what lies ahead
Solana price is having a tough Friday as market turmoil is raging through all asset classes as big fears arise in the global banking system with Deutsche Bank’s bond prices cratering. Just as headlines are emerging on the possibility of a Chinese regulatory crackdown on Binance, the exchange needs to halt deposits and withdrawals as spot trading is halted. Bitcoin and other cryptocurrencies are taking a turn for the worse.
SOL could nosedive near 10% and slip below $20 to find support at the red descending trend line. A bounce would be quite normal, though a break below the red descending trend line would spell issues ahead. With a reentry in the descending triangle, a break below $19 could open the door for another 25% drop.
SOL/USD 4-H chart
As happened a few times in the past weeks, the US session could bring a complete turnaround. That would mean that SOL would jump higher and head back to $23 near the monthly pivot. Although a bit far, a close near $24 would be possible if the Dow Jones and other US indices rally substantially higher.