Solana (SOL) has struggled to report any gains after trading in losses over the last three sessions in a row. The coin now looks very weak, and unless something drastic happens, it’s headed for further decline. Here are some highlights:
SOL has fallen sharply in the last 24 hours, dropping by almost 10%.
The coin still remains above a crucial $100 support zone
But this is unlikely to hold in the coming days
Data Source: Tradingview
Solana (SOL) – How far can it fall
After surging at the end of March, SOL slowed sharply in April. The coin has fallen from its $140 highs and is now just above the $100 mark. SOL even managed to push below its lowest price in March of $107. This could suggest that we are on the brink of a trend reversal that could see more losses follow.
In fact, if bulls lose the crucial psychological support zone of $100, then the only way for SOL will be downwards. The $100 and the $93 support zones have proved very strong in the past. While there may be some resilience in the days ahead, the $100 will be lost, and bulls will try to consolidate at $93.
But if $93 is also lost, SOL will enter an intense downward spiral that could bottom at $77 before any leg up. This will represent a loss of nearly 30% from its current price and almost a 100% decline from its highest price in March.
Is it good to own Solana?
Solana is a big project, and if you don’t have it yet, this would be a nice time to buy it. However, because there is a significant downside risk, you may want to wait for a week or so.
Based on current indicators on the chart, SOL is likely to bottom. When that happens, you can buy and hold SOL for the future.
The post Solana (SOL) struggles at a crucial resistance – Here is why it could drop further appeared first on Coin Journal.