Solana (SOL) has been seeing an uptrend, having gained 0.89% in the last 24 hours. It is set to recover but the bears continue to have a stronghold. SOL pierced the south side of the $12 – $14 trading range and registered a 10% loss of market value on December 15. The altcoin struggled to retaliate and gain re-entrance to its lost levels of support.
At the time of writing this article, Solana was trading at $12.35. It has been down by 3.47% in the last seven days. The price has found support at the $12.00 mark. It is likely to find resistance at $12.50. SOL lost interest in the bulls since the beginning of 2022. The Solana price, as per classical technical analysis, is on a true downtrend. It’s struggling to overcome the losses and make some gains before the year concludes.
Charts show that Solana’s daily trading price lies 40% beneath the closest simple moving average (SMA). Failure to retrace highlights the bears’ underlying strength in the crypto market. Solana witnessed a 20% market decline on February 15 during the 2021 bull run. Now, it’s hovering above the newly established yearly lows at $10.94. Analysts believe a breach of the $9 liquidity level would result in a 25% decline in SOL’s market value.
But a break above the previous week’s high is much needed to reach higher bullish targets. Obstacles above the level would invalidate the bearish bias, and create the possibility for a spike into the 50-day SMA at $17 for a 40% gain.