Solana (SOL) price could fall another 30% if it doesn’t hold this level

The price of the Solana native blockchain token has been rising since June 10th. During this time, it hit a new yearly high of $32.13 and broke above a long-term descending resistance line.

However, the short-term movement of the price of SOL casts doubt on the possibility of a reversal.

Solana can’t keep up

Technical analysis of the weekly timeframe shows that three weeks ago, SOL broke the descending resistance line that has existed since November 2021. Such breakouts often signal the end of a previous trend and the start of a reversal. The possibility of a change in direction is confirmed by four bullish candles that formed after reaching the lows in June.

The legitimacy of the breakout is confirmed by the weekly relative strength index (RSI)which fixed above the 50 mark.

However, it is worth noting that the price of Solana failed to close above the $27 horizontal area, resulting in a long upper wick. (marked in red on the graph)indicating selling pressure.

SOL Price Forecast: Chances of a Reversal Still exist

The readings of the daily timeframe look ambiguous. The main reason for this is a rejection above the $27 resistance area and a subsequent fall below it. (on the graph it is marked with a red red circle). Such price movements are considered bearish and often result in significant declines.

In addition, the daily RSI is at risk of falling below 50. In this case, SOL is likely to fall to $18, reaching the rising support line that has existed since December 2022.

Thus, Solana’s long-term price outlook is bullish, while the short-term remains bearish as long as the asset trades below the $27 horizontal area. Fixing above it can lead to growth to $35.