Solana appeared to be well into the breakout move from the bullish flag pattern on the daily chart before Wednesday’s colossal fall in the cryptocurrency markets took out stops on bullish positions on the asset.
Solana has been able to claw back most of these losses and looks set to reclaim the 47.54 resistance level. This point is where the initial flag breakout occurred.
Solana remains lower on the day, down 18.11%. It remains to be seen if the bulls can seize the initiative to force Solana’s price back up.
Technical Outlook for Solana
Today’s steep drop sent Solana to the 61.8% Fibonacci retracement of the swing low of 4 March to the swing high of 18 May at 29.73. However, a bounce has taken Solana’s prices off these levels, back above the 40.73 price level (38.2% Fibonacci retracement). This scenario preserves this support’s integrity as the site of a previous cluster of lows. An extension of this bounce targets 47.5425 (23.6% Fibonacci retracement), with 50.00 (2 May low), 52.03 and 58.39 forming additional targets to the north.
On the other hand, a breakdown of the support at 40.73 opens the door towards downside targets at 37.43 (13 May low) and 35.23, before 29.73 (61.8% Fibonacci retracement) becomes the next target.