Solana's native blockchain token, SOL, completes its second week of decline, having lost a combined 17% in the last 14 days. In addition to the loss in price, SOL also lost support at the important $30.5 level. Now SOL is likely to finally reach the bottom of the corridor where it has been trading since the end of May, and then the fun begins.
Can SOL surprise everyone again?
Looking at the weekly chart of SOL, you can see that the cryptocurrency has been trading in a similar price range for the last five months to what it was a year ago. The limits of this corridor have since been $24.5 and $47. It is by holding on to this lower boundary and breaking this ceiling that SOL has risen 430% in three months since August 2021.
It is likely that the SOL price reaching the $24.5 mark will mark the beginning of the end of the cryptocurrency's fall. However, going below that level, as it did a year ago, will not be ruled out. At the same time, if SOL goes below these zones and is not brought back in time, it has the risk of going into a lengthy negative price discovery.
Given the unexpected surge and the accompanying hype that was around Solana last year, the SOL chart is truly one of the interesting ones in the crypto market this time again.
Arman Shirinyan
Valeria Blokhina