Solana has fallen in price, and the Altcoin’s support line at $40 is below it. The downtrend occurs in the middle yet another network outage. The outage lasted more than 4 hours due to a software error.
Solana also suffered another outage during January, which lasted over 18 hours. The Solana ecosystem has been affected by constant outages that cause traders to lose portfolio value.
The altcoin has lost 6.4% in the past 24 hours. SOL lost over 12% during the week. SOL tried to climb after a consolidation period, but it was soon repelled by the bears. After the altcoin’s critical support at $50 was lost, its constant value has remained steady ever since. Due to this downtrend, buying strength also fell.
Solana Price Analysis: One Day Chart
SOL traded at $38 as of the writing. The stock was downtrending after losing its support level of $40. SOL could aim to reach $34, if it cannot maintain its current level of price. These price levels were reached last August 2021. According to the yellow descending trendline, there is a downtrend.
The coin should be worth $50 to allow bulls to acquire the coins and invalidate the bearish thesis. Volume of coin traded was down and in the red. This indicates bearish dominance of the market.
Technical Analysis
SOL tried to temporarily recover on the Relative Strength Index. However, the indicator at the time that this article was being written noted a decrease. SOL can become too oversold if the Relative Strength Index is slightly elevated, but bear pressure could cause it to rise.
The coin fell below the 20 SMA line as the sellers took over the market. If the coin’s reading falls below the 20 SMA, it means that sellers are driving market price momentum. However, a slight push by the bulls might lift the SOL price above the 20 SMA line, which could ease the selling pressure.
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Bollinger Bands, which are responsible for displaying price volatility, indicated there had been a squeeze release. Squeeze releases are essentially a sign that volatility in price could be anticipated. The above chart shows mixed signals, so the price of Solana can swing either direction.
Awesome Oscillator displays the current price momentum as well as a change in it. An indicator that flashed green signals a potential change in momentum and a buy signal.
Bullish signals can include buy signals if the traders follow through.
According to other indicators, SOL could be trapped in the current price action during the trading session. If the market expands support, a change is possible.
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