Solana (SOL) was one of the large-cap assets affected by the recent market downturn triggered by the US Federal Reserve’s rate cut. The Solana price succumbed to the bearish pressure and fell beneath $200 for the first time in over a month.
While the price of SOL has continued its downward spiral in the past day, a prominent crypto analyst on X believes that the altcoin might be gearing for a rebound already. Below is how the Solana price could course-correct and resume its bullish trend.
Can SOL Price Reclaim $200 Again?
In a post on the X platform, crypto pundit Ali Martinez shared an interesting insight into the current Solana price action. According to the analyst, several indicators and formations are pointing to a rebound for the altcoin’s price.
This prediction revolves around quite a number of indicators and chart formations. Firstly, Martinez noted that the price of Solana appears to be testing a key support zone between the $188 and $179 region.
As shown in the chart above, this price zone has served as a significant resistance level in the past — from March to November. Typically, when the price flips a resistance zone, the level tends to act as a significant support should the price return to it.
Besides the cost basis of investors, the Relative Strength Index (RSI) is also pointing to a potential rebound for the Solana price. The RSI, which tracks an asset’s overbought and oversold levels, is currently at 31.72.
According to Martinez, this RSI level has acted as support in the past, with the Solana price traveling to new swing highs on each occasion. Monitoring this indicator could provide the right time to enter a long position for the altcoin.
Furthermore, the stochastic RSI is currently at oversold levels, suggesting that the price might be ready for a reversal. The Stoch RSI differs from the regular indicator in terms of the sensitivity and timeliness of its signals.
Martinez did not specify a target for the Solana price should the indicator signals prove true. However, a glance at price action data shows that the altcoin’s price tends to at least return to its previous swing high whenever it finds support at the aforementioned levels.
Solana Price At A Glance
As of this writing, the price of Solana is hovering around $180, reflecting a disappointing 6% decline in the past 24 hours. The cryptocurrency’s performance is even much worse on the weekly timeframe, having dropped by nearly 17% in the last seven days.
Source: NewsBTC