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Solana Price Analysis: After SOL Rejected Below $100, This is The Support Level to Watch

Summary:
Over the weekend, SOL lost the 0 support level, which turned it into resistance. Unsurprisingly, following the negative sentiment, the SOL price dropped today to . Key Support levels: , Key Resistance level: 0, 0 On Sunday, SOL rejected attempting to break above 0 and, by doing so, confirmed the level as resistance. Earlier today, the price took a nosedive reaching for a short period before a slight recovery. -80 support likely be tested again if buyers do not place orders. However, SOL is extremely oversold right now, and a temp correction may take place at any moment in the next hours or days. Chart by TradingViewTechnical Indicators Trading Volume: Selling volume was very high over the past four days, a bad sign for the bulls, but follows

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Over the weekend, SOL lost the $100 support level, which turned it into resistance. Unsurprisingly, following the negative sentiment, the SOL price dropped today to $80.

Key Support levels: $79, $56

Key Resistance level: $100, $130

On Sunday, SOL rejected attempting to break above $100 and, by doing so, confirmed the level as resistance. Earlier today, the price took a nosedive reaching $80 for a short period before a slight recovery.

$79-80 support likely be tested again if buyers do not place orders. However, SOL is extremely oversold right now, and a temp correction may take place at any moment in the next hours or days.

SOLUSDT_2022-01-24_18-19-42
Chart by TradingView

Technical Indicators

Trading Volume: Selling volume was very high over the past four days, a bad sign for the bulls, but follows the overall market sentiment, along with fundamental reasons regarding the Solana network conjunctions.

RSI: The RSI has entered the oversold area at 20 points on the daily timeframe. Such a low RSI level was not seen since December 2020, which is extremely low. The RSI rarely stayed at such levels for long.

MACD: The daily MACD has been bearish for almost a week and there are no signs that this condition will end any time soon. Both the histogram and moving averages are making lower lows.

SOLUSDT_2022-01-24_18-20-06
Chart by TradingView

Bias

The current bias is bearish. SOL is currently suffering from an extreme sell-off, which might trigger a temp correction towards $100.

Short-Term Prediction for SOL Price

At some point, the sellers will become exhausted and it will be too costly to continue to push price lower in terms of risk/reward ratio. At that point, SOL has a good chance to enter a strong relief rally that can take it back towards $100 or above.

Until that happens, the sellers have the upper hand and the critical support at $79 must hold to reverse this downtrend.

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