Solana Reclaims $200 but Flashes Warnings of Possible Decline to $175

Solana tested the $190 support a few hours ago, but rebounded. It registered a new high for the week following several waves of significant downtrends.

The coin had one of its biggest declines during the previous intraday session, dropping from $211 to $191. It broke below $200 for the first time in more than fourteen days, raising concerns about the broader implications of losing this critical mark.

Nonetheless, the 1-week chart shows that the altcoin is experiencing one of its most bearish performances in months. Down by over 18%, the asset is experiencing a decline of the same magnitude as those seen in March. However, fundamentals show an end to the downtrend.

Investors eagerly anticipated the release of the Personal Consumption Expenditure Price Index. The release of other economic data on Thursday had a polar effect on prices. They came in higher than expected, but prices retraced. The same is currently happening; PCE came in as expected, causing a significant buyback.

The coin’s rebound at $190 may extend following this fundamental shift. Interestingly, the charts support assertions of further declines.

4-hour Chart Flashes Green

Solana experienced a short squeeze, resulting in a minor pullback from the downtrend. However, it has since erased the gains and has reached a new low.

Nonetheless, the 4-hour chart revealed that the coin rebounded after bollinger’s lower band. Traditionally, this could mark the end of the downtrend. Additionally, the relative strength is at 23; it is oversold.

Both indicators suggest that SOL is due for a rebound. Previous price movements indicate a potential surge above $200. It edged closer to flipping the sell wall at $210. The fibonacci retracement level pushes the target higher, hinting at a rise to the 38% mark at $212.

It is also worth noting that the moving average convergence divergence supports the bullish claims. It currently displays a positive crossover. 

Solana Risks Plummet to $170

Solana is trading at $201 at the time of writing as the market continues to react to the PCE. Its recent price follows a short period of lingering close to $193. Nonetheless, the asset is edging closer to breaking out at $210. 

The altcoin retraced below the bollinger bands on Thursday in the heat of the selling frenzy. On several occasions, slipping below this key indicator marks the end of a downtrend. This is playing out as SOL is back within the lower and middle bands as recovery advances.

Additionally, the relative strength index has been on the decline over the last five days. The coin’s latest surge in buying volume has led to a change in the metric’s direction. It slipped to a low of 35 during the previous intraday session.

Both indicators are pointing to further increases ahead, with previous price movement hinting at an attempt on the $220 resistance. 

However, Solana still risks descending to below its recent low. A closer look at the chart reveals the rebound happened at a level with meager demand. The coin may be experiencing a short-lived recovery, as the 1-day chart suggests that $190 may not withstand another retest.

The coin has traded between $170 and $175 for an extended period. It goes without saying that several declines ended at this price level. It could be SOL’s next target if it retraces.

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