- The price of SOL attempted a recovery rally following days of consolidation.
- The buying pressure in the rally was exhausted and a correction took place.
- The price of SOL is at risk of dropping to $30.
The price of Solana (SOL) attempted a recovery rally following days of consolidation between a support and resistance level. This move was meant to be a hail mary for bulls. However, the buying pressure was soon exhausted, leading to a lower high and a correction. Now, this correction could worsen SOL’s current condition.
Since May 13, SOL’s price action has remained in the bounds of the $41.25 support level and the $55.97 hurdle. Even though there were several moves made, the price activity of SOL remained in this range.
The most recent SOL price movement was the retest of the $41.25 barrier, which resulted in a 20% ascent that failed to push through the $47.34 200 Simple Moving Average (SMA) on the 4-hour chart for SOL/USDT.
In a cascading effect, SOL crashed by 21% to shatter the $41.25 support level. This event flipped SOL into a bearish cycle. While a failure to recover above the mentioned hurdle would threaten the gains of SOL’s price, investors need to closely monitor the $37.37 price level.
A bearish onslaught may be on the cards for SOL. (Source: TradingView)
This support level can make or break the situation for SOL bulls, as a breach of this level will be a confirmation of a bearish onslaught for SOL investors and will knock the price of SOL further down by 15%. The knock-on SOL’s price will see it retest the $31.59 barrier. Bears may also extend this potential downtrend to retest $30.
Although SOL investors find themselves in a gloomy situation, a 4-hour candlestick close above the 200 SMA line at $47.34 will lead to a higher high and invalidate the bearish thesis.
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