Solana lost 7% over the past 24 hours and dropped below $35.50. The cryptocurrency market has been dominated by bears and all altcoins are falling on their charts. Solana is also under bearish price action, despite showing minor gains on an hourly chart.
Bears are likely to try and stop the price movements despite the gains. The technical outlook was not favorable. Bitcoin is still close to $20,000, while the other major market players are also struggling as of this writing.
The support line at $35 for altcoin seems dangerously near. But, bulls are still defending the next support level of $30. The market’s buying strength is still low, and with increasing selling pressure SOL may again drop to $30.
Global cryptocurrency market capital today stands at $941 billion with a falling of 2.6%In the past 24 hours.
Solana Price Analysis: Four Hour Chart
SOL is optimistic with a double-digit gain of 20% over the past week. SOL is one altcoin that has seen a significant recovery over the past week. The bulls have gotten tired of driving the price higher despite the recent recovery.
The chart showed a downward triangle, which indicates a fall in price. SOL then declined. Solana trades at $35.65 at the time this article was written. It is possible that the coin will face strong resistance at $38.
SOL’s current price will fall to $30, and then drop to $26. The volume of SOL traded in the last trading session fell signifying that buying strength hasn’t fully picked up.
Technical Analysis
SOL showed an increase in purchasing strength, but it is possible that the buying power might drop over the next trading session. Relative Strength Index saw an improvement and was higher than the half-line, which indicates that sellers outnumbered buyers on the four-hour chart.
However, it is too early to say if this coin will maintain its price momentum. It barely crossed the 20-SMA, which showed that the market was still strong. Market buyers were however driving price momentum at the press time.
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The price momentum and trend reverses are represented by Moving Average Convergence Divergence. It formed red histograms following a bearish crossover. This was a sell signal. This could be tied to an incoming decline in the price of SOL.
This is what registers the strength and direction of the current market trend. The ADX moved close to the 20 mark with a decline, which indicates that the trend is losing strength. This again points towards continuing bearishness.
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Featured Image from UnSplash. Chart by TradingView.com