The Solana price is rolling over in early trading Friday as the crypto market responds to the equity market meltdown. Solana (SOL) is down, trading at $192 (-8.6%), around 30% below the all-time high set earlier in the month. As a result, the layer-blockchains market cap has dropped from $76 billion to around $58 billion in the last two weeks. However, Solana remains the 50th most-valuable cryptocurrency ahead of Cardano (ADA).
A sharp rise in Covid-19 cases in South Africa, attributed to a deadly new strain, has sent shockwaves across risk assets today, driving US stock index futures sharply lower. Subsequently, Bitcoin is trading below $55,000 for the first time in six weeks, triggering liquidation of lower value crypto assets. As a result, Solana is starting to break down from a three-month uptrend, which could trigger an exaggerated move lower.
SOL price Analysis
The daily chart shows the Solana price is below the rising trendline at $200, although several highs and lows between $192 and $195 offer some support. Nonetheless, in my opinion, the rising trend line is significant, and a close at the current level is extremely negative, potentially targeting the $120 area.
Therefore, my current view is bearish, with a $120 price target. However, a close above the trend at $200 removes the immediate stress, invalidating the bearish call.
Solana Price Chart (daily)
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