Solana was witness to strong bullish forces over the last seven days. However, bulls have lost steam as of this writing. In the 24 hours since the start of the day, the cryptocurrency has fallen by 9%. SOL currently stands at $38 as its support level. Following the July 13th rally, the asset’s price reached an all-time high of $38. The bears were predicted to take over technical outlook for Solana.
The chart of Bitcoin fell by 6% in the last 24 hours. Altcoins had the exact same result. The price action was negative as the Solana buying strength declined significantly. On charts, coins are not known to retrace after relief rallies.
Solana may break the current price barrier and attempt to reach the ceiling. If SOL manages to move the $44 price mark, a visit to the $50 doesn’t seem too difficult. Solana will regain its price momentum by gaining buying strength and broadening market strength. Today, the global cryptocurrency market is worth $1.07 trillion. 5.1%Negative change over the past 24hrs
Solana Price Analysis: Four Hour Chart
SOL traded at $41 as of the writing. After hitting the $46 mark, bulls began to lose momentum. Solana had at least $48 as its overhead resistance, a level that would allow it to move higher and reach $50.
SOL could fall below its current price level to reach $38 and then the $30 support area. SOL could remain in the same area if buying momentum continues. The increase in SOL trades can indicate a rising buying power, which could be a sign of a recovery.
Technical Analysis
The altcoin’s buying strength remained low, sellers were dominating the price action on the chart. The Relative Strength Index also displayed similar emotions. RSI, or relative strength index was pictured under the half line. This signifies decreased buying power.
The indicator showed a rise in buyers despite a decrease. This can be considered bullish. SOL’s price was lower than the 20-SMA. This indicated that short-term sellers drove the momentum. Solana’s price was nevertheless above the 50 and 200-SMAs, which suggested that bullish activity could see a rebound.
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SOL was the one to watch for the drop in buyer strength. It also displayed a sell sign. Amazing Oscillator displays price direction and momentum, along with trend reversals. AO has formed red signal bars, which are sell signals for the asset.
The Parbolic SAAR is also used to indicate price direction. Dotted lines placed above the candlestick indicated that there was a negative price direction at the time. Solana must move upwards in order for buying strength to improve on the chart.
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Featured Image from The Financial Express. Chart from TradingView.com