Solana has had a 2022 to forget. After crossing over the year well above the $100 mark, the coin has seen several major sell-offs. Right now, it is slightly trading above $35, but the bearish outlook appears to have eased a bit. Here is what you need to know:
Selling pressure on SOL has eased as the coin finds strong support at $35.
The altcoin has however not shown any bullish signs, with its uptrend limited to $41.25.
But consolidation above $35 and improved sentiment in crypto could change all this.
Data Source: TradingView
The bullish case for Solana
A few weeks ago, it was hard to make any bullish case for Solana. The coin had fallen below $50 and would go one to breach two other crucial support zones. It was in fact expected SOL would likely bottom at $20 before any bull run.
But this bearish outlook appears to have eased up a bit. Although SOL is not nearly as strong as it was at the start of the year, the altcoin has shown immense resilience. As of now, it has managed to hold the $35 support. This also comes as overall sentiment in the crypto market gets an early June boost.
With these factors, SOL could finally be ready for a decisive bull run. If indeed the coin is able to break the $41.25 ceiling, it could push further up to test $55 before any pullback. But a failure to consolidate above $35 will invalidate this analysis.
Does SOL have any downside risk?
The downside risk for SOL doesn’t seem to be that worrisome right now. In fact, we don’t think the coin will lose the $35 support. Even if it was to somehow fall below that price, expect a quick and fast recovery.
However, this may affect its bullish run. But with everything else considered, including overall sentiment in the market, SOL should see some gains in the coming weeks.