Solana price has fallen into an important support area following its recent correction, and investors have their eyes on this area to see whether it can bounce back. Analysts expect that the Solana price, staying at the current support level, will attract new buyers and help the price rise again.
At the time of writing, SOL is trading at $77.01, up 1.74% over the last 24 hours. Daily trading volume reached $3.87 billion, while its market capitalization stood at $44.79 billion, according to CoinMarketCap data.
Solana Price Tests Key Support
A well-known crypto analyst, BitGuru, published his thoughts on July 14, adding that many investors became pessimistic about SOL following its price drop. However, according to BitGuru, the current Solana price level might be a key point.
As per BitGuru, the price range of $74-$75 has become a key support region for the Solana price. With the cryptocurrency staying above this level, the upside momentum could return to take the coin towards the price range of $80-$84. However, failure at this support level could see the coin heading downwards.
It comes amid scrutiny by investors of whether or not Solana will stabilize following several sessions of sell-offs in the overall crypto market.
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Solana Price Holds Above Key Technical Level
From a technical point of view, Solana is trading at $77.01, near the middle Bollinger Band of $76.73. The higher band is placed at $84.89, whereas the lower band is at $68.57, which indicates that the stock price is operating in the normal trading zone, indicating low volatility in the market.
MACD Line: 0.9160, Below Signal Line: 1.2750, Negative Histogram Value: -0.3590. It suggests that the positive momentum in the Solana price is declining, as it was witnessed in the form of a rally. Further declines in the MACD below the signal line may indicate further weakness in the coin.
Why This SOL Price Level Is Critical
The importance of the current support zone is that it can determine the future trend direction of the Solana price. Usually, support zones reveal if the buying pressure is strong enough to defend the market following the correction.
If SOL continues to trade above the $74-$75 range, the market participants will feel more confident and will try to take the price higher, above the $80 level.
However, should support fail, then the focus will be on the lower Bollinger band in the area of $68.57 as buyers try to get back into the market.
What Could Happen Next to the SOL Price
The next couple of trading periods are deemed crucial for the Solana price. Maintaining the price above the $74-$75 support area will make the case for a move towards $80-$84 more convincing.
Nonetheless, a fall below the area will put Solana back to lower support levels ahead of another rally. Until then, it is at an important technical level.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
