SOL / TetherUSShort
SOL Loses $110 Support; Brief Pull Back or Imminent Correction?
SOLUSDT retraced to within a medium-term positive price channel that had formed on its daily chart over the past few weeks. In the last 5 days, the altcoin also lost the support of the $110 mark. Should sellers continue to offload their SOL holdings, the cryptocurrency’s price could drop to the subsequent support level at $80 in the next few days. Thereafter, continued pressure could force SOL down to as low as $57.50 in the short term. This bearish thesis may be invalidated if SOL is able to close a daily candle above the $110 mark in the next 72 hours.
Technical indicators on SOL’s daily chart are contradicting each other. On one hand, the Moving Average Convergence Divergence (MACD) suggests that SOL could enter into a bearish cycle. This is evident by the MACD line closing in on the MACD Signal line, as well as the negative gradient of the MACD Histogram.
Meanwhile, the Relative Strength Index (RSI) indicator showed that buyers were gaining strength against sellers. Although the RSI line is positioned bearishly below the RSI Simple Moving Average (SMA) line, a cross between these two lines could signal a significant bullish change in momentum for SOL.
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