SOL/USD has suffered a swift and potentially painful move downwards for speculators who have found price action going against their buying positions. The broad cryptocurrency market has been extremely nervous with strong selling being demonstrated too.
However, the move lower in Solana is among the biggest within the major cryptocurrencies. SOL/USD was trading near a value of 158.000 on the 13th of January. This morning, the price of Solana is hovering below 87.000. The move lower is not quite 50% in the past ten days, but too say it has been steep would be an understatement.
This weekend’s price action in SOL/USD has not brought comfort to traders who have been attempting to search for reversals higher. Speculators who believe Solana has been oversold may prove correct in the mid and long term, but current conditions are extremely nervous and the fact that SOL/USD has entered a price range not practiced since August of 2021 is a troubling signal.
In the first week of November, SOL/USD was able to trade near the 260.000 mark. The loss of value SOL/USD has suffered since then is considered even extravagant within the always-volatile cryptocurrency world. Important support near the 86.000 to 85.000 levels should be watched carefully by traders. If the levels prove vulnerable and see sustained trading beneath, speculators may believe the 80.000 ratio is a target.
Bullish traders who are not afraid of the selloff and believe upside action will develop should consider the notion that the bearish trend has been strong, and timing reversals could prove very dangerous if they are using leverage. The 80.000 mark if flirted with by SOL/USD could prove to be a wild inflection point and ignite rapid trading results. Should this important juncture prove vulnerable, traders may believe mid-August 2021 values near the 68.000 price could be a legitimate target if a downward trajectory remains intact.
Broad market action in the cryptocurrencies remains quite nervous. If Solana and its major counterparts continue to face headwinds, traders may be forced to increase their selling to try and pocket any semblance of profits they may have remaining if they have been long-term holders of crypto. Speculators should be careful under the present conditions. Selling SOL/USD using solid risk management may prove to be a wager worth pursuing by aggressive traders, but their price targets should remain realistic, because reversals remain part of the betting landscape short term.
Solana Short-Term Outlook
Current Resistance: 89.900
Current Support: 84.900
High Target: 98.820
Low Target: 71.870
