Solana ready to bounce back? SOL Technical Analysis of June 18, 2024

The SOL token represents a milestone of the exceptional relative strength that has carried it over the past 6 months. Back at the key supports, the price action is torn by holding a medium-term uptrend and short-term development. Will Solana’s Cryptocurrency Avoid A Crash?

It’s Tuesday, June 18, 2024, and Solana (SOL) is trading around $135.

We have been experiencing consolidation in the crypto market for several days and Solana does not escape its correlation with the market by showing signs of technical degradation. The SOL token, like many altcoins, is suffering against the dollar, but also against Bitcoin, which remains very resilient during this period, a symbol of doubt for many investors.

Ranked fifth in terms of market capitalization, Solana remains—at $67 billion—an important project in the crypto ecosystem. Let’s take a technical look at the SOL token!

Couple with Solana 24 hours 7 days 1 month
Solana/USDT -5.90% -10.50% -20.50%
Brine / Bitcoin -5.20% -8.00% -18.60%
Solana / Ethereum -2.80% -7.90% -28.00%

👉 How to easily buy Solana (SOL) in 2024?

The Solana token did not hit an all-time high in 2024. However, it only failed at 20% of the second value. However, the notable element of this bull cycle is the weight it now occupies in the ecosystem. SOL dominance reached an all-time high of 3.66% in March 2024.

This dominance is currently being defended as the chart manages to hold a level higher than the closing highs of the 2021 cycle. However, the SOL is showing some signs of weakness, with the high point reached in May 2024 being lower than the previous one..

It is important to watch this dominance in the 2.7% zone which marks the top of the 2021 cycle and in the green drawn chart on the chart below around 2.40%.

A chart of Solana’s dominance within the cryptoecosystem

Cryptocurrency Research: Don’t Miss This Bull Run, Surround Yourself With Experts

Return to the key $135 level

The $135 level is a key weekly pivot for Solana. Indeed, we mentioned a possible scenario in our May 28 analysis dead cat bounce “. The latter would gain in probability in case of closure below this zone.

This is shown in yellow in the graph below. It corresponds to the concurrence of many key levels:

  • 0.382 bull leg retracement from October 2023;
  • 0.5 bear market retracement;
  • the bottom of the compression triangle;
  • previous minimum.

The whole challenge this week is to maintain the $135 level so as not to make a lower low than the previous one, which would initiate a weekly downtrend on the Solana according to the DOW law.

A strong reaction would be to recapture the 7 and 20 week moving averages, either before the close this Sunday or in the next 2 weeks.

Chart of Solana price against dollars in W (weekly)

Solana weekly price chart

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In the shorter term, we can observe a bearish flow, the inertia of which drags prices down. This flow is materialized by a ping-pong between the lower Bollinger band and the 7-day moving average.

These few days will mark a confrontation between weekly SOL supports and the flow that has started. The bearish camp will be waiting for a continuation of the back and forth movement between the low BB and the 7 and 20 day moving averages. On the contrary, the bullish camp expects a crossing of the moving average of 7 and a favorable consolidation to subsequently surpass the 20-day average.

Solana vs. Dollar Chart in D (Daily)

Solana token price chart on a daily basis

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In short, Solana is sitting on a key technical level: weekly supports are being tested by bearish daily flow. It has to resist the risk of starting a weekly downtrend at the end this Sunday.

So do you think SOL can keep its support? Feel free to give us your opinion in the comments.

Have a great time and see you next week for a new altcoin technical analysis.

Sources: TradingView, Coinglass, Glassnode

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