Solana on Brink of Disaster?🚨

Oh dear, it seems like Solana (SOL) is having a bit of a meltdown. After a failed breakout above all-time highs, the price has been struggling to stay afloat, and investors are getting a tad nervous. The bears are in control, and it’s like they’re playing a game of musical chairs – except instead of chairs, it’s demand levels.
😳

Top analyst Carl Runefelt shared a technical analysis on X (because who doesn’t love a good X-ray?), revealing that Solana might retest a horizontal resistance if it breaks down a bearish flag pattern. This key level is like the canary in the coal mine – if it falls, SOL could drop to test lower demand zones, leading to further downside pressure. Yikes! 😨

But don’t count the bulls out just yet! If they manage to reclaim key resistance levels, a potential recovery could be on the table. It’s like a game of tug-of-war – except instead of a rope, it’s the price of SOL.

🤯 The coming days will be critical in determining whether Solana will continue its downtrend or establish a structural price change.

Solana is trading at $216 after losing the critical $220 demand level, a major support that bulls needed to hold. Now, bears are in control, and every moment SOL spends below this level increases the risk of further downside. If the price fails to recover quickly, the next significant demand zone to test will be around $200, a level that could determine whether SOL continues its correction or finds a strong bounce.
🤔

For now, SOL remains in a fragile position, and traders should closely watch price action around $220 and $200. A continued downtrend below $200 would confirm a deeper correction, while a swift recovery above $220 could reignite bullish momentum. The next few sessions will be crucial in determining Solana’s short-term direction.
📊

Read More

2025-02-02 12:23