Solana Hits Major Support At $141 Amid Bitcoin Drop, Analyst Says It’s Time To Buy

1 month ago 16

Solana’s price action has been declining in the past 30 days, and the crypto recently retreated to $141.3, its lowest price in the timeframe. Interestingly, this decline has seen Solana hit a major support level, which could turn the tide in its price action for the next 30 days. According to a social media post by crypto analyst Ali Martinez, Solana could turn bullish for the next few days if this support holds. 

Solana Hits Major Support

Solana has struggled with attention from traders alongside other altcoins, with a majority of the activity going to Ethereum after the SEC’s approval of Spot Ethereum ETFs. As a result, SOL has drastically declined from $187 in the past three weeks, losing about 24% of its value.

This fall has been further aggravated due to Bitcoin’s corresponding drop in the past few days. As Bitcoin dropped below $65,000, Solana slid to $141, testing support at its 200-day moving average.

As Martinez noted, the journey to the $141 support level seems to have signaled a reversal, at least in the short term. Notably, the TD Sequential indicator has flashed a buy signal for Solana’s SOL on the daily timeframe, suggesting now could be an opportune time to pick up the altcoin as it starts to rebound.

TD Sequential counts the number of candles in a trend, with a 9 indicating 9 periods of lower lows or lower highs. After 9 periods, the odds increase that the trend may reverse.

#Solana has hit a key support level at $141, with the TD Sequential showing a buy signal on the $SOL daily chart! If this support holds, #SOL could rebound for one to four daily candlesticks.

— Ali (@ali_charts) June 15, 2024

After two consecutive red candles, SOL now appears to be on the verge of forming a green candle, according to the daily timeframe chart shared by the analyst. 

“If this support holds, #SOL could rebound for one to four daily candlesticks,” Martinez noted.

SOL is currently trading at $145. Chart: TradingView

SOL Price Prediction

At the time of writing, Solana is trading at $145.10 and it looks like it is already on a rebound path. Pulling back to look at a wider timeframe shows that the last time Solana stalled at $141, the crypto would go ahead on a 32% surge to $186. Repeating this price action would see Solana surge back to $186 during the new week. If Bitcoin can also hold key support levels at $66,300, it may help SOL and other altcoins see decent bounces from here. 

However, not all TD indicator signals result in sustained uptrends. If Solana fails to hold above $140, this could cascade into a further price decline to another support at $130. According to Coinglass Longs vs. Shorts data, traders are still indecisive on Solana’s direction. Specifically, 49.05% of Solana futures positions opened in the past 24 hours were long, compared to 50.95% short positions.

Featured image from Getty Images, chart from TradingView

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