Solana lost almost 6% in the past 24 hours due to the market getting more volatile. Bitcoin trading was below the $40,000 level, while Ethereum traded above the $3,000.
After a drop of 6% in the last day, the global currency market cap was at $1.94 Trillion.
Solana showed a remarkable recovery in charts, breaking subsequent price ceilings during the week.
Coin had reached $110, where it was hovering around thrice over the past week. After the latest dip, buyers made the decision to sell the market. The four-hour chart shows a significant drop in the price.
Solana Price Analysis: Four Hour Chart
Solana was listed at $100 at time of writing. In the 24 hours since writing, Solana has seen a drop of close to 6 percent in its value. SOL experienced a dramatic recovery and challenged the $110 resistance mark.
SOL was at $96 its closest support level as of press time. SOL was in a downward trendline which indicates that it could continue its downtrend. It indicated that Solana was experiencing a price correction from the 4-hour chart.
Solana could fall by as much as 4% immediately if bears are allowed to continue their dominant position. Prices would fall to $96 if they drop below that level. Then, prices will plummet to $87 before finally falling 18%. Finally, land costs at $80.
Although trading volume has dropped, it was still in the green. This could indicate that buyers were increasing pressure at the time.
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Technical Analysis
Solana was under a lot of pressure to buy when the price rose on April 18. The coin was experiencing a surplus in sellers at the time this article was written.
The Relative Strength Index was below its half-line, which indicates increased selling strength. However, there was a small uptick in the RSI. The uptick in the RSI could be a sign that purchasing strength is expected to increase over the coming trading sessions.
SOL was located below the 20 SMA Line on the 20 SMA. This was the result of sellers driving market price momentum.
As you can see from the chart above, Solana was in a price correction. MACD is the indicator that determines the market momentum. It indicated bearishness. According to the indicator above, there was a bearish crossover in the market at the time the article was published.
The histograms were also small and red, indicating that SOL was going to continue with a negative price action. Investing in Solana at the moment doesn’t seem to be a wise decision. To see any relief, the coin had to surpass the $110 mark and continue trading over that price for some time.
Parabolic SAR, which establishes a stop loss order, shows dotted lines that are above price candlesticks. This is synonymous with a negative price movement.
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Featured image by Unsplash.com. Charts from TradingView.com