SOL Gains 9%+ After Finding Support, Eyeing Recovery After Bearish April

The crypto market has witnessed massive volatility and losses in recent weeks, much after the halving event. Solana has experienced notable fluctuations, particularly since the start of April. As of today, 2nd May, this digital asset has regained its momentum and currently trades at $132.47, an impressive recovery of 9.05% in the last 24 hours to the Soana community. This follows a period of intense bearish momentum that saw SOL's value decrease by over 30% in the last 30 days. However, after today's recovery, SOL has eased the reading to 28% over the last 30 days. Currently, Solana now holds a market cap of $59.1 billion, ranking it fifth among crypto assets, and a 24-hour volume of over $4 billion, a 15% increase within the same timeframe.

SOL Price Chart: CoinMarketCap

Broader economic events greatly impact the crypto market. A major factor was the anticipation of the Federal Open Market Committee (FOMC) meeting, which led to widespread speculation about rate cuts. This speculation contributed to a market-wide sell-off on May 1st, deepening the price drops. Solana was not spared, with an intraday loss exceeding 10%. Besides, April was particularly tough for Solana as it navigated through the uncertainties of the Bitcoin halving event. The price of SOL plummeted from $204 to its current level,

From the news, Jerome Powell noted that the Fed prefers rates stay where they are until inflation drops to 2% again. Crypto prices could soon experience relief bounces as traders regain confidence in speculative buys.

SOL Technical Analysis

Solana's price action over the past several weeks reveals a consistent bearish trend. Since early April, each weekly candlestick has closed lower, following rejections at the $209 resistance zone. Two weeks ago, the price managed to find some double support at the $125 level – horizontal support and an ascending trendline. This support briefly ceased the downward trend and the price corrected upwards but the bearish momentum resumed, breaking down past an ascending trendline.

SOLUSD Daily Chart: TradingView

After breaking down from an ascending trendline on April 30th, SOL ended April on a bearish note. On April 1st, the price retested this trendline, which now acts as a resistance zone. Today, 2nd April, the downward trend persisted after a retest ended with a rejection, setting the stage for potential further declines.

SOLUSD 4-Hour Chart: TradingView

In the 4-hour timeframe, this retest and subsequent price movements are more visible and the price is currently approaching the $120 support level, which will be crucial in determining the short-term direction of Solana. If this support holds, it could offer temporary stability and recovery. However, a break below it could see the price heading lower towards the next support level at $110, and potentially even as low as $98.46, should the selling pressure strengthen.

Upcoming Events and Community Engagement

Despite the market challenges, the Solana ecosystem continues to advance with key events on the horizon. Notably, the Solana Breakpoint conference is scheduled for September 20-21, 2024, in Singapore. Additionally, the Solana community will convene in Istanbul, Turkey, for a conference from May 10-11, offering a platform for engagement and discussion among enthusiasts and developers and for the entire Solana community

As Solana tests crucial support levels, future price predictions hinge on its ability to hold above $120. A breach could target $110 or even $98.46.