Buyers are struggling to keep the Solana price above $170 despite the recent 4% intraday drop, as the ongoing decline in the crypto market is fueling a retest in the price.
Over the past 12 hours, the massive surge in supply has seen $157 million worth of long positions liquidated amid a major market drop. Ethereum has suffered the most, with $100 million worth of bullish positions liquidated over the past 24 hours. Meanwhile, Ethereum-killer Solana suffered the same fate, with nearly $10 million worth of long positions liquidated as SOL dropped to $170.
Solana holds on to $170 as high supply retest warns of a failed breakout
Despite breaking a resistance trend line with two large bullish candles, the broader market repercussions could cause a failed reversal in Solana. In the weekly chart below, the astonishing 40% rise in two weeks has not been sustained, as it has declined by 7% this week. As shown in the chart, Solana is currently in a retest phase.
Source: Solana Weekly Price Chart
Solana is currently trading at $167, down by 5.40% intraday. The penetrating bearish candle comes about from a drop in FUD and appears a slippage underneath the broken trendline.
Rejecting the breakout, the decline could lead to a deeper, longer bearish correction that could plunge below the psychological $150 threshold.
The momentum pointers, MACD and signal lines, are ready for a bullish crossover to support the breakout bounce. The daily RSI line, which remains above the midway mark, reveals sufficient demand.
Recovery Prospects for Solana Are Visible on Shorter Timescales
With a sharp decline of 4.19%, the SOL trend broke below the long-term support trendline. The bearish engulfing candle has reduced the day’s gains and is currently testing the $169 support area and the 50D EMA.
Solana Price Chart
Solana is currently forming a green Doji candle at a vital support point, enhancing the odds of a bounce back to retest the broken trendline.
Will the SOL price reach $200?
The market-wide drop is generating additional stress over Altcoins, which has caused Solana to fall to $170. However, the chance of a reversal increases as many bullish components hold the fort against additional correction.
According to the Fibonacci levels of the weekly chart, a reverse bounce after the retest could push Solana above the 78.60% Fib level at $198. Therefore, $198 and $249 are the next potential targets for SOL.
If the high supply causes a failed breakout run, the next support levels are $162 and $155.
