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Solana has lost 5% in 24 hours as cryptocurrencies turn red
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The decline in crypto tokens is due to profit-taking after weeks of gains.
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Solana token could break out soon, and investors should be keen.
Solana SOL/USD has lost 5% in the last 24 hours as of press time. Maybe you could be wondering; is it time to buy? Or, you are a bit paranoid that the bear market has kicked in, and you are considering staying away. We urge that Solana could be looking for more bullish power before a major breakout occurs. Investors should watch the token for the potential to buy once that happens.
Looking generally at the crypto sector as of July 25, most tokens remain in the red. While the macro concerns remain, the bear market happens after some robust gains. The declines are, therefore, a result of profit taking from mainly short-term traders. SOL is one of the crypto tokens that saw an attempt to break from a key resistance fail. The slide could see buyers come in again, allowing a stronger bullish push.
Solana crashes back to the consolidation zone after a false breakout
Source – TradingView
On the daily chart, SOL has entered the consolidation zone established at between $32 and $42. It happens after the token temporarily breaches the resistance level in a false breakout. However, we can’t rule out that the breakout will remain valid if SOL holds above the MA. What we are sure of is that SOL remains bullish as long as it remains supported above $32.
At the moment, the token could continue consolidating until bulls overpower bears. The cryptocurrency is a hold. Investors can also add positions at the current level if the price remains supported by MAs. A drop to $32 would also open buy trades.
Summary
SOL remains robust despite a false breakout above $42. The token could find a bullish momentum to push above the consolidation zone. The next potential level is $58.