solana (SOL) price dropped to a new yearly low on Nov 2021. There are no bullish reversal signals in place.
The past week was beset by negative Solana news. On November 17, Binance announced that it is temporarily suspending deposits of USDT and USDC on the Solana Network.
While deposits eventually resumed on Binance, the same did not happen on BitMex, BiByt, or OKX, the latter of which removed the stablecoin. This happened to reduce the fallout from FTX exposure.
On November 18, stablecoin issuer Tether decided swap $1 billion USDT on Solana for ERC-20 tokens, used in the Ethereum blockchain. The move comes after the collapse of FTX as Solana had close ties to the now-defunct exchange. net worth off The Solana Network is down 70% since the collapse of FTX.
The next day, Metaplex, a decentralized protocol for creating digital assets on the Solana blockchain, announced that it was extracting Several staff members.
Despite this negative news, Solana’s co-founder dismissed concerns about these losses, stating that the treasury 30 more months of the runway.
Solana breaks down from key support
The picture in longer-term technical analysis may look more attractive. SOL price broke the long-term support area with an average price of $29 during the week of November 14 to November 21.
This was the next move to a downside that followed the all-time high. Similar declines were observed in the rest of the cryptocurrency market.
The SOL token reached a low of $11.54 in November 2021. Hence, Solana has not bounced at all in the last 24 hours.
The breakdown resulted in the weekly RSI breaking above its bearish divergence trend line (green). This is a bearish development that often leads to lower prices.
If the decline continues, the nearest support area will be at $4.40. Measured from the current price, this would be a decline of 62.40%.
The short term daily chart supports this hypothesis. While Solana price bounced into the $13 area, forming two lower wicks (green icons), it has since broken down. The $13 area is now likely to act as a resistance (red icon).
As a result, it is almost certain that the price forecast will be bearish.
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