Solana recorded a loss of 7% in the last 24 hours and fell below the price mark of $35.50. The bears have ravaged the cryptocurrency market and overall altcoins have fallen on their charts. Solana is also under bearish price action despite a slight uptick on the hourly chart.
Despite the growth, the bears will try to impede the price movement, as the technical forecast paints a negative picture. Bitcoin is still close to the $20,000 mark while other market drivers also continue to struggle at the time of writing.
The altcoin is dangerously close to the $35 support line. However, the bulls continued to defend the next $30 support line. Buying power also remains low in the market, with increased selling pressure, SOL could drop again and trade near the $30 price level.
The capitalization of the global cryptocurrency market today is 941 billion dollars with a fall of 2.6% in the last 24 hours.
Solana Price Analysis: 4-Hour Chart
SOL was bullish last week with a double-digit gain of 20%. SOL remains one of the altcoins that have rebounded significantly over the week. Despite the recovery, the bulls are tired of pushing the price up.
When a descending triangle appeared on the chart, associated with a fall in price, SOL followed it and decreased on the chart. At the time of writing, Solana is trading at $35.65. The coin could face tough resistance at the $38 price level.
A fall from the current price level would send the price of SOL down to $30 and then to $26. SOL’s trading volume has fallen over the last trading session, which means that the purchasing power has not fully increased yet.
SOL showed an increase in purchasing power, but there is a possibility that purchasing power may fall during the next trading session. The Relative Strength Index picked up and was seen above the half-line, indicating that there are more buyers than sellers on the 4-hour chart.
However, it is still too early to draw conclusions about whether the coin will continue to maintain this price momentum. The coin barely managed to cross the 20-SMA line, indicating that there is still selling power in the market. However, at press time, buyers determined the price momentum in the market.
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Convergence-divergence of moving averages display price momentum and trend reversals. The indicator passed the bearish crossover and formed red histograms. The appearance of these histograms was a signal to sell the coin. This may be due to the upcoming decline in SOL prices.
The medium trend is responsible for registering the strength of the current trend. The ADX has been approaching the 20 mark with a down tick, which signals that the trend is losing strength, again indicating continued bearish behavior in the market.
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Featured image from UnSplash, chart from TradingView.com
Credit : www.newsbtc.com