Solana price confirms the bearish bias mentioned in the previous outlook. Key levels have been identified to gauge the strength of the downtrend.
Solana price is falling fast
Solana price is falling penny-from-Eiffel style during the early Tokyo session, bringing the total market value down 10% for the week. Although a countertrend rally will likely occur, the Solana price hints that bear are still unsatisfied and will seek to aim lower.
Solana’s price currently auctions at $28.96. During the current decline, an uptick in bearish volume is present. Additionally, the relative strength index is now in extremely oversold territory. Combining these elements suggests the current mudslide is no ordinary correction. Traders should be careful with any countertrend trade setup ideas.
It was mentioned in the previous outlook on October 5, when SOL traded at $34, that bearish signals could catalyze a move toward $25. Now that Solana has halfway hit the target, the $25 SOL price seems almost self-fulfilling. Key levels of interest along the way might be a $27 liquidity level. If $25 does not hold, a $19 SOL price could be the ultimate goal post.
Invalidation of the bearish outlook remains a breach of the October 10 high at $33.11. If the bulls manage to tag the invalidation level, an additional uptrend rally targeting the $44 congestion zone could occur. Such a move would result in a 30% increase from the current Solana price.