Solana Technical Analysis: SOL Continues To Drop, Slips Below $170

Daily Solana Price Analysis

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Last Updated January 5th 2022
4 Min Read
  • The Solana price slipped below $170 during the ongoing session as SOL continued to slide. 
  • SOL has been in the red since Sunday and had dropped by nearly 4% on Monday. 

The Solana price remained in the red during the current session, as sellers continued to retain control, driving SOL below $170. SOL had started the weekend on a positive note, rising by over 5% and settling at $179.21. Here the 20-day SMA came into play as resistance, and the price fell back on Sunday, falling by 1.52%. The bearish sentiment persisted on Monday, with SOL dropping by nearly 4% and settling at $170.03.

Solana Price Chart Indicates SOL Could Drop To $165 

The Solana price rose by 1.36% on Saturday, starting the previous weekend on a positive note. SOL continued to push up on Sunday, rising by 2.50% and settling at $197.90. SOL fell back in the red on Monday despite the bullish weekend, falling by 1.11%. The price continued to drop on Tuesday, falling by over 9%, slipping below the 20-day SMA, and settling at $177.33. The bearish sentiment persisted on Wednesday, with SOL dropping to $170.77 before recovering on Thursday and rising to $172.48.

Image: SOL/USD daily

Image: SOL/USD daily chart 010522

The Solana price was back in the red on Friday, falling by 1.46% and settling at $169.97. SOL recovered over the weekend, rising by over 5% on Saturday and moving to $179.21, where the 20-day SMA acted as resistance. As a result, the price fell back on Sunday, dropping by 1.52% and ending the weekend on a bearish note. SOL continued to drop on Monday, falling by nearly 4% and dropping to $170.03, before slipping below $170 during the current session.

We can see that the Parabolic SAR is currently bullish, but if SOL continues to drop, we could see it flip to bearish.

Image: SOL/USD 4-hour

Image: SOL/USD 4-hour chart 010522

Looking at the Solana price chart, we see that SOL dropped to $167.81 on the 31st. The price pushed up from this level, rising to $173.25, where the 20-bar SMA was acting as resistance. SOL pushed past this level and rose to $179.21 on the 2nd but could not stay at this level, dropping to $175.60 and then slipping below the 20-bar SMA on the 3rd, falling to $172.76. SOL continued to drop from this level, dropping to $167.89 on the 4th. The price rose to $172.14 from this level before dropping to its current level of $168.

We can see that the Parabolic SAR and MACD are both bearish, indicating that we could see the price drop further.

Coinbase Executive: Solana And Other Layer-1s To Continue Growth In 2022

In a new company blog post, Coinbase chief product officer Surojit Chatterjee said that Ethereum (ETH) competitors Avalanche (AVAX) and Solana (SOL) should see significant improvement this year and that new layer-1 (L1) solutions will emerge.

"As we welcome the next hundred million users to crypto and Web3, scalability challenges for ETH are likely to grow… Traction of Solana, Avalanche and other layer-1 chains shows that we’ll live in a multi-chain world in the future. We’re also going to see newer L1 chains emerge that focus on specific use cases such as gaming or social media.”

Chatterjee also said he believes decentralized finance (DeFi) protocols will begin to embrace regulations, and large institutions will play a bigger role in DeFi because of it. He added that DeFi platforms welcoming regulations with know-your-customer (KYC) verification standards would pull in hesitant blue-chip investors.

“[Institutions] are still hesitant to participate in DeFi. Institutions want to confirm that they are only transacting with known counterparties that have completed a KYC process. Growth of regulated DeFi and on-chain KYC attestation will help institutions gain confidence in DeFi.”

The executive also predicted that prominent brands would follow in the footsteps of Coca-Cola and Charmin by participating in the metaverse and utilizing non-fungible tokens (NFTs).

“We’re likely to see more interesting brand marketing initiatives using NFTs. NFTs and the metaverse will become the new Instagram for brands."

Solana Price Is Expected To Reach These Levels 

The Solana price chart shows that SOL has been extremely bearish since Sunday, slipping below $170 during the ongoing session. If the current bearish sentiment persists, we could see SOL slip to $165 and possibly lower.