Solana price gives back gains, overshooting recent support at $85 to test a new demand area at $85. The prominent altcoin holding the fifth spot in the market with a cap of of $36 billion, has lost 3% of its value in 24 hours, 14% in seven days, and 28% in a month to trade at $83 during US trading business hours on Tuesday.
Declines since Solana price peaked at $125 in December respected the confines of a descending channel, with no immediate sign of a trend reversal. For now, holding above support at $80 means that bulls have not lost all hope and might push for a short-term recovery to $100.
Can Solana price recover from $80 support?
The action below two critical bull market indicators applied to the daily chart — the 20-day Exponential Moving Average (EMA) (blue) and the 50-day EMA (red) point toward a worsening technical structure.
The Relative Strength Index (RSI) although neutral is dropping sharply towards the oversold region. This implies a bearish outlook and the immense possibility of the downtrend extending below $80.
For bulls, holding above $80 is very essential for the immediate resumption of the uptrend. However, if this level is lost as support, the chances of a longer bearish trend taking shape would surge tremendously.
Solana price chart | Tradingview
Until the RSI hits oversold levels below 30, the danger of a lengthy correction will continue to linger.
An immediate rebound from the buyer congestion at $80 might improve investor sentiment. To be on the safe side, traders should wait until Solana price is accepted back into the upper half of the descending channel, with support provided by the middle boundary and the 50-day EMA at $87.
For conservative traders, a break above the channel could signal a new bullish phase for SOL price, anticipating a break out above $100.
FOMO often moves Solana price hence with a successful retest of $100 resistance, recovery to $120 would be much quicker and set the framework for a breakout to $200 and the all-time high at $260.
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