- Solana price prints a nosedive move on Wednesday during the European trading session.
- SOL sees bulls diving for support that remains 15% lower.
- Expect the uptrend to stay intact, as this cool-down is perfect for bulls to load up on SOL tokens.
Solana (SOL) price has traders taking their profit and running for the door after SOL failed to break and stay above $26 on Monday and Tuesday. The correction that is currently unfolding is a good thing in the longer term as bulls will want to be part of the price action at a discount. Expect roughly another 15% decline toward vital support before Solana price enters the next phase of its rally, which could see $48 being tested in a few months.
Solana price purge is a good element for the longer-term trend
Solana price is purging its price action from short-term bulls scalping the alt-currency for short-term gains. Proof of that comes as those same bulls quickly exited their positions at $26 on Monday and Tuesday. The correction will bring Solana price back to more moderate levels. This will attract investors to buy into the price action at a discount.
SOL will find support between $20 and $18.66, with several elements present to provide support. The Relative Strength Index (RSI) would also get some space to dip further and offer a better upward potential for traders awaiting the support area. Once the Fed calms the markets and reassures all that inflation will still come down, a buy explosion will happen in cryptocurrencies overall, with SOL first breaking through $26 and being on a steep trajectory toward $48 by April.
SOL/USD daily chart
Markets are currently torn between two possible scenarios, from which one holds a catalytic approach and bears a big global recession. That would happen when inflation rises again globally and supply chain issues return to the top list of concerns. If that is the case, expect the lower end of the support area at $18 not to hold and trigger another leg lower toward $10.
