Highlights:
- Bitcoin’s correction intra-day drives Solana’s bearish trend
- Solana could rebound if a V-shaped recovery retakes the $172.89 price level
- A rebound could push Solana to $186.59 in the short term
Solana (SOL) is bearish today following Bitcoin’s intra-day correction. When going to press, Solana was down by 7.83% to $169.27. This decline has seen Solana break through the $172.89 support level on the daily chart, indicating that bears are currently in control.
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Technical Analysis – Solana Bearish After Losing Key Support Level
If the bearish momentum continues, investors should keep a close eye on the $162.66 support level, a multi-week threshold that could provide some support. However, Solana could see a significant drop if this support fails, potentially falling to as low as $120.
Conversely, if the bulls regain control, the first critical resistance level to watch would be $172.89. Breaking through this resistance could set the stage for a rally towards $186.59, a critical multi-week resistance level. Given the current market dynamics, there are signs that a rebound is more likely, especially if certain conditions align.
Bitcoin and Solana Price Action
One of the primary factors that could support a rebound for Solana is Bitcoin’s price action. Bitcoin has found strong support at $64,000 and shows signs of a possible rebound. If Bitcoin begins to push higher from its current price, it could trigger a broader market recovery, benefiting altcoins like Solana.
Macro-Economic Factors That Could Boost SOL
Another supportive factor for a potential rebound is the anticipation of a rate cut. Speculation about a possible rate cut soon has been circulating, which could inject more liquidity into the financial markets. Such a move would likely boost investor confidence and reverse the correction Solana has experienced over the past 24 hours.
Solana’s Unique Position in the Market
Solana also has several intrinsic factors that could increase its price if the market sentiment shifts. Solana remains a preferred platform for launching meme coins, a trend gaining significant traction in the crypto market. The demand for these meme coins could increase SOL prices in the short term.
Upcoming Solana Breakpoint 2024
The upcoming Solana Breakpoint 2024 event, scheduled for September 20-21 at the Suntec Singapore Convention & Exhibition Centre, adds to the potential bullish outlook for Solana. Organized by the Solana Foundation, this event will unite developers, industry experts, artists, students, creators, entrepreneurs, and community members worldwide.
Are you ready? https://t.co/51G659H1Km
— Solana (@solana) July 31, 2024
Solana Breakpoint is expected to feature insightful talks, interactive workshops, networking opportunities, and exclusive updates from the Solana community. With notable speakers such as Jeremy Allaire, the chairman of Circle, the event is set to generate significant buzz. The excitement and developments unveiled at Breakpoint 2024 could provide a strong catalyst for Solana’s short- to medium-term price.
A Recap on Solana Price Action
While Solana is currently bearish, several factors suggest a potential rebound soon. Bitcoin’s potential rebound, the anticipated rate cut, and Solana’s continued dominance in the meme coin market are all supportive elements. Furthermore, the upcoming Solana Breakpoint 2024 event adds a layer of optimism for Solana’s prospects.
Price-wise, a sustained move above $172.89 could set the stage for a rally towards $186.59, while a break below $162.66 could signal further downside. The $172.89 resistance and $162.66 support are critical determinants of how Solana could trade in the short term.
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