Sol’s volatility currently appears low on the daily chart due to a lack of interest. While the crypto’s outlook remains bearish on a short-term scale, it may resume drops if the supply level increases.
Last month was a bit calm for Sol as it bounced off $112, leading to a notable recovery after months of consistent decline. This brought small gains as selling was temporarily suspended.
It later ended the month on a sad note as the price rolled over after failing to push above the $145 level. However, things have become stagnant for days due to lack of interest and is now trading flat.
While this reveals a volatility contraction on the daily chart, we can expect a sudden price movement once it finishes gathering liquidity on the lower timeframe. An expansion to the downside is much more expected following the existing bearish phase in the past months.
If that happens, the previous monthly low might pose a little threat on the way down. But if the bears retake it, we can anticipate a bigger loss.
Expanding upside should bring positive actions in the market. If the bulls sustain pressure above $200, we can expect a slight shift in the market structure as the price increases daily. That said, it remains bearish on the micro-level following a huge loss in three months.
SOL’s Key Level To Watch
The potential support level to watch below $122.7 is $112 – last month’s low. A breakdown from there could dip the price into the key $100 level.
A strong upsurge from the current calm phase should bring trading back to $136.7, along with the $147.5 resistance. A push above it should allow buying to the $161 and $180 resistance levels.
Key Resistance Levels: $136.7, $147.5, $161
Key Support Levels: $122.7, $112, $100
- Spot Price: $125.8
- Trend: Bearish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.