Solana Technical Analysis: SOL Continues To Drop, Slips Below $130

Daily Solana SOL Price Analysis

Last Updated January 21st 2022
4 Min Read
  • The Solana price slipped below $130 on Thursday, as sellers drove the price down by almost 6%. 
  • The current session sees SOL down by almost 1%, as sellers continue to control the market. 

The Solana price has been extremely bearish during the current week, with SOL dropping by 5.51% on Monday, dropping to $139.92. The 200-day SMA was acting as support at this level, and the price recovered marginally on Tuesday, rising by 0.98%. However, SOL was back in the red on Wednesday, dropping below the 200-day SMA and settling at $135.22. Thursday saw SOL slip below $130, as sellers drove the price down to $127.64. The current session sees SOL at $125, down by almost 2%. 

Solana Price Chart Indicates SOL Could Drop Towards $120 

The Solana price started the previous week in the red but registered a sharp increase on Tuesday, rising by $140.22. SOL continued to push up on Wednesday, pushing up by over 8% and setting at $151.60. Despite the bullish sentiment, the price fell back on Thursday, dropping by almost 4% on Thursday and settling at $146.13. On Friday, SOL remained in the red, registering a marginal fall, before recovering over the weekend, rising by 1.09% on Saturday and then 0.25% on Sunday to end the weekend at $148.08.

Image: SOL/USD daily

Image: SOL/USD daily chart 012122

After the positive weekend, the Solana price fell back in the red on Monday, dropping by 5.51% to $139.92. At this level, the 200-day SMA was acting as support, and the price recovered on Tuesday, rising by 0.98%. However, Wednesday saw SOl back in bearish territory, as it slipped below the 200-day SMA and settled at $135.22. SOL continued to drop on Thursday, dropping by nearly 6% and settling at $127.64, and then dropping to $125 during the ongoing session.

the MACD has flipped to bearish, indicating that we could see the price drop further.

Image: SOL/USD 4-hour

Image: SOL/USD 4-hour chart 012122

Looking at the 4-hour Solana price chart, we can see that SOL had pushed above the 20-bar SMA on the 16th, rising to $150.01. The price fell back from this level, dropping below the 20 and 50-bar SMAs and settling at $142.97. SOL continued to drop from this level, falling to $136.70 on the 18th before registering a marginal increase and settling at $141.29. SOL could not stay at this level and fell back, dropping to $134.36, before recovering and surging past the 20-bar SMA on the 20th and rising to $143.30. However, after reaching this level, the price fell back below the 20-bar SMA and moved to its current level of $125.

The Parabolic SAR and MACD have flipped to bearish, indicating that the price could drop further.

Shark Tank Investor Kevin O’Leary Says Solana (SOL), Polygon (MATIC) And Hedera (HBAR) Have ‘Large’ Potential

Shark Tank star and billionaire investor Kevin O’Leary sees several leading altcoins that he believes have the potential to add problem-solving value as the blockchain world expands and evolves. In an interview with Anthony Pompliano on The Best Business Show, O’Leary said cryptocurrencies should be viewed as functional “software” rather than simply alternate forms of money.

When it comes to determining which blockchain projects to pursue, the investor says he relies on the same process of vetting teams and vision as with traditional software companies. He cited his hands-on approach with layer-2 scaling solution Polygon (MATIC) as a real-world example.

“I’ve seen this movie before. I was an investor in software engineers twenty-two years ago at the Learning Company when we made educational software. The way I used to do it then is the way I’m doing it now…

If I want to invest in Polygon, I want to meet the engineering team, which I did in Dubai. I met the team, heard the vision of what they’re doing, looked at the economic reality at the outcome, the potential of it.

First is team. If I check the box on team – smart guys, good engineers, good strategy, good group – I’m interested.”

O’Leary said that beyond the initial concept, he wants to see the potential for a positive economic impact too.

“Here’s the second test. What economic value are they creating?

In the case of Polygon, aggregating transactions to reduce gas fees on Ethereum is a smart idea. You have an economic reason to pursue that. You save money. Transaction fees are less. I think the potential of that is large.”

The Shark Tank personality mentioned enterprise-grade public network Hedera (HBAR), tailored for security and regulatory compliance. O’Leary concludes his remarks by reiterating the importance of conceptually looking at cryptocurrencies differently.

"I say to institutions, ‘You criticize me for investing in Bitcoin? You own a big position in Microsoft [and] a five-percent weighting in Yahoo. What is that? That’s software."

Solana Price Is Expected To Reach These Levels 

Looking at the Solana price chart, we can see that SOL has been extremely bearish during the current week and has dropped below $125 at the time of writing. If the current bearish sentiment persists, we could see the price drop to $120.