Solana has fallen substantially over the past 24 hours and has been slowly approaching its important support line. The technical outlook for the coin continued to reflect bearish sentiment. However, a few days ago, the coin tried to bring back the bulls.
At the moment, SOL has returned to trading near the level of August 2021. Buyers also left the market as the bulls were defeated. The price of the coin has now found support at $38. As the bears put pressure on and force sellers to dominate the market, Solana may not hold above the $38 price point again.
The main resistance for the coin is still expected at $44 and if SOL regains bullishness, then the coin could continue to rise during the coming trading sessions. The capitalization of the global cryptocurrency market today amounted to $1.29 trillion. 2.6% negative change in the last 24 hours.
Solana Price Analysis: One-Day Chart
SOL was trading at $39 at press time, managing to stay above the $38 support level. Given that the bears have returned, it is possible that Solana is targeting a fall below the immediate support line. The nearest support line after $38 was at $34.
As the coin forms a descending triangle signifying bearish sentiment, SOL could also target the $30 price support line. Given that bitcoin also pulled back slightly on the chart, market weakness could be the reason why Solana’s upward move could be halted.
The upper resistance for the coin was $44, after which the altcoin could face new resistance at $59. The volume of the coin traded in the last session decreased and turned red. This meant bearish sentiment on the charts.
The altcoin was oversold last week, based on this scenario, the coin was above the oversold area at the time of publication. Despite the fact that the coin was above the oversold area, due to the recent drop, the coin has experienced a lot of selling pressure.
The relative strength index marked a decline, signaling a shortage of buyers in the market. The price of SOL was below the 20-SMA line, which meant that the sellers were controlling the price momentum in the market.
Continued selling momentum will only add to the negative price movement, however a push with continued demand could send Solana above the 20-SMA line.
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The technicians have drawn a mixed signal with the indicators more bearish on the chart. Chaikin’s cash flow, which indicates capital outflows and inflows, continued to remain below the half-line.
This meant that capital outflows exceeded inflows, despite the rise in CMF. Another bullish signal would be the Awesome Oscillator flashing green signal bars.
The indicator is associated with the image of the price impulse and its possible reversal.
Green signal bars indicated a buy signal. If the buyers follow the signal, the bulls may see some relief on the chart.
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Credit : www.newsbtc.com