Solana price drops to crucial support after sharp decline

The Solana price is currently at $65. up 5.9% in the past 24 hours, but that masks the bigger picture. After months of compressed price action, Solana broke downwards from a consolidation zone, resulting in a decline of as much as 20 to 30%. Analyst DaanCrypto sees the coin now landing on a key weekly support level, and states that the bulls need to make a statement here.

Solana is available at OKX and Bybit.

Breakout after long consolidation leads to sharp move

That a breakout from a prolonged consolidation period leads to sharp moves is no surprise for experienced traders. DaanCrypto points out that this is exactly why you wait for confirmation before taking a position. With a breakout after three or more months of compressed price action, the subsequent move is typically large enough to still enter.

That is exactly what happened in this case. The Solana price made a move of more than 20% downwards as soon as the consolidation zone broke. As seen on the weekly chart, the price fell from around $87 to a low of approximately $64. a loss of about $22.36 or 27.18%. DaanCrypto says that such moves give you time to enter, even if you miss the initial breakout.

Bulls must now make a stand at weekly level

The Solana price is now at one of the last major weekly support levels remaining. According to DaanCrypto, this is a crucial moment. The bulls must step in here and start reclaiming the horizontal levels above, otherwise further price pressure threatens.

On the chart, it is visible that the price lands near the $60.50 zone, a zone that previously served as support. Whether Solana manages to form a bottom here depends on the reaction of buyers at this level. The coming days will therefore be decisive for the direction in the short term.