The crypto markets are plunging. The Bitcoin price is about to lose the pivotal support at $60,000. The growing uncertainties following the warlike situation between the two countries have heavily impacted the traditional financial markets and the crypto markets as well. This has negatively impacted the SOL price rally, which is about to lose one of the important support levels between $136 and $138.
What will happen if the token loses these levels? Will the SOL price head back to $100?
Solana is undergoing a dynamic price action where the pullback lasts for weeks or months, while the drop can be over in a matter of days. After the March 2024 high, each pullback has lasted between 20 and 30 days, while the drops occur within 7 to 14 days. The last major drop developed within a short 8-day timespan. After this drop, the SOL price consolidated for nearly 55 days If the current drop develops in late July or early August, then the Solana price could be in deep trouble.
Similar to Bitcoin, Solana is also stuck within a descending parallel channel and has dropped below the average bands of the channel. The RSI is also forming another lower low, which suggests the price is about to test the lower support in the higher time frame, around $120. Besides, the MACD displays a rise in the selling pressure, which may delay the probable bullish crossover.
Currently, the SOL price is trading below moving averages that were recently working as support. Therefore, the token is believed to drop to $127 once it loses $135 and if these levels are lost, the next pitstop could be at $120. These can be considered the last strong support above $100, as the lower support of the channel may not offer a strong base. Hence, a drop to $88 may be imminent if the Solana price slips below $115.
