Falling Solana Price Breaks $17 Support; More Downfall head?

The Solana price falling for four consecutive days gave a massive breakdown from the $26.5 neckline support of descending triangle pattern. This breakdown aligned with the FTT sell-off and caused a sharp decline in SOL/USDT pair. Furthermore, the ongoing downfall breaks the $17 support, offering a selling opportunity for interest traders.

Key points

• The Solana price breaks another support of the $17 mark
• The SOL price downtrend will remain intact until the resistance trendline is intact.
• The 24-hour trading volume in the Solana coin is $6.1 Billion, indicating a 41% gain.

Source-Tradingview

The Solana coin price continues to crash following the clash with FTT over the week resulting in a FUD-driven high momentum price trend.  Currently, the market price trades at $16.4 with a 32.5% fall over the last 24 hours, with a spike in trading volume reflecting increased selling pressure.  

Monitoring the daily technical chart, the downfall of the descending triangle pattern released the stored bearish momentum. As a result, the downtrend rally amounts to a decline of 40% in the last two days to test the bottom support level of $17. 

At press time, the daily candle shows lower price rejection from the $17, promising a reversal, but the news of $940 Million of Solana ready to be unlocked in 24 hours warns otherwise.  

Going by common sense, a downtrend continuation could break the $17 support level to reach the next level at $12.2. Accounting for a drop of 24%, the breakout will highlight an excellent selling spot for sideline traders. 

Conversely, a bullish reversal will retest the broken level of $22.2. 

Technical indicator

RSI: Due to the excessive selling, the RSI slope falls to the oversold zone. The general sentiment to get rid of Solana among investors undermines the RSI signal to buy during the oversold times. 

EMAs: the falling prices increased bearish influence over the 20 and 50-day EMA, sabotaging the bullish crossover to lead the downtrend. 

Solana price intraday level

• Spot price: $16.17
• Trend: Bearish
• Volatility: Medium
• Resistance levels: $17 and $22.2
• Support levels: $12 and $9.75