SOL's fate to be determined by retest of $80 support

KUCOIN:SOLUSDT   Solana / Tether
In the past few days, we have witnessed SOL's once steadfast $100 support level utterly collapse, in the process becoming a new level of resistance. As a result, the price of SOL dropped today to the next support of around $80. A brief retracement to the .618 level (~$96 ) was observed due to the following technical indicators:

  • RSI: The RSI has entered the oversold area at 20 points on the daily timeframe for the first time since December 2020. Historically, SOL's RSI rarely stayed at such levels for long.
  • Trading Volume: Extremely high selling volumes were observed as a result of the network's most recent onslaught of congestion and outages, which in turn were further exacerbated by the overarching sentiment of uncertainty that pervades the entire market as a result the current Russia-Ukraine tensions.
  • MACD: The daily MACD has been steadily bearish for nearly a week, with both the histogram and moving averages making lower lows.

In all likelihood the correction towards the $100 support is a temporary correction, and the critical support at $80 must hold for downtrend to be reversed. Otherwise, a continued fall to the next historical support level of $60-65 will likely be next.

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