Solana Price Prediction: SOL’s Recovery Depends On The 200 SMA

With the exemption of a few selected cryptocurrencies in the green on Friday, the entire cryptocurrency market continued to wade in deep-sea waters, unable to stay afloat. Solana’s downside potential was impossible to contain at $150 and $144, resulting in another flash drop below $140. Meanwhile, TRON had slipped below $0.07 bringing the accrued weekly losses to $11.5% according to CoinGecko.
Solana Briefly Holds The 200-day SMA Support
Investors have quickly come to the realization that the downside potential was far from being exhausted. A break under $144 catalyzed more losses as people offloaded more of the token, perhaps to invest in more stable assets now that COVID Omicron was spreading like wildfire across the world causing mayhem.
The 200-day Simple Moving Average (SMA) was in line to provide SOL with the much-needed support to possibly prevent losses from stretching further. As elucidated in the daily chart below, Solana’s downtrend has been following a descending parallel channel.
Since the middle boundary already gave in to the overhead pressure, the focus shifted to the lower limit of the channel. If the 200-day SMA caved, this line of support would come in handy but if push came to shove, SOL may break down below $124 and head to $100, respectively.