The crypto sector is caught in a deep correction and recent reporting shows that a majority of high coins are more than 70% lower than their 202 highs. Solana is among that list and investors are on the fence about whether the token has strong enough bases to guarantee buy SOL at its current value.
Data from Cointelegraph Markets Pro and TradingView shows that SOL is down 87.5% from its all-time high and considering the current state of the market, most prices are not reaching a daily higher high.
Despite the bleak outlook, there are a number of possible positives that could make Solana a project to look at once the wider market enters a consolidation phase.
SOL pricing received a rapid boost late last week after an announcement on June 23 that the project will release a Solana mobile stack that enables native Android Web3 apps on Solana.
To accompany the new operating interface for smartphones, Solana has also revealed that it will release its own “Saga” Android phone via Solana Mobile to lead the way on Web3-enabled devices.
Web3 and the Metaverse are two of the themes that have emerged from the bull market of 2021 and show the future of where blockchain technology is headed. This move by Solana shows that despite the short-term struggles, it continues to develop for the future and seeks to play a role in the wider adoption of blockchain and cryptocurrency.
The low-fee nature of the Solana blockchain makes it an ideal candidate for nonfunctional signage (NFT) projects and video game dApps, and the release of a technical stack for mobile phones is the next step in creating wider access to these technologies.
If the developers can manage to solve the problems that continue to cause disruptions of the Solana network, the token has a chance to be a major challenger after the wider market becomes bullish again.
It feels like $ SOL goes through a similar trough of disappointment as $ ETH made back in 2018. In bear markets prices are not only reflective — a feeling as well. @solana has a vibrant developer ecosystem and its malfunctioning problems are solvable. This will be evident in retrospect.
– spencernoon.eth (@spencernoon) June 27, 2022
Short-term pain is expected, but basics are improving
While it’s nice to look ahead to what the distant future may have, the reality is that the near-term outlook for Solana and the broader crypto ecosystem is pretty unattractive.
Notification of the lower price points to observe was offered by crypto trader and pseudonymous Twitter user Crypto Tony, who posted the following chart warning traders not to fall for the first retest of a major support level.
Crypto Tony said,
“First test zone tested so this reaction, but you really want to call bottom already after the first test …”
Based on the chart provided, the remarkably lower levels of support for Solana are at $ 13.50 and $ 3.50.
Market analyst and pseudonymous Twitter user Crypto Patel as well predicts a further disadvantage in the near term for SOL due to a strong amount of resistance found at the 200-day exponential moving average.
Crypto Patel said,
“After a $ 40 zone break and retest, Supports converts to Resistance […] Facing resistance at 200EMA. Can ever give a disadvantageous move. For sale: $ 38.5, SL: $ 43.2, TP: $ 27. “
Related: SOL price eyes accumulate 75% while Solana paints an bullish inverse pattern
Is SOL in the early stages of recovery?
A more optimistic outlook for Solana was offered by pseudonymous Twitter user Trader McGavin, who posted the following chart highlighting the major resistance levels at $ 60, $ 74 and $ 95.
The analyst said,
“Double bottom after breaking the wedge and bouncing higher. One of the first to bounce the bottom and can be directed to $ 48.”
The importance of maintaining current price levels has also been touched on by crypto trader and pseudonymous Twitter user Altcoin Sherpa, who posted the following chart noting the bullish signal provided by the intermediate EMAs.
Altcoin Sherpa said,
“$ SOL: Still an area of doing or dying in low time frames; this is the first time we’ve seen some of the mid-EMAs come to life since March. A longing in the middle of $ 30 is my current plan as a scalp because I missed the short higher. ”
The opinions and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and business move involves risk, you need to do your own research when deciding.