What’s Next For Solana As The Coin Witnesses Bearish Momentum?
The price of Solana managed to rise by more than 20% in just a week, but for now the price remains consolidated. As Bitcoin remains below the $25,000 belt, altcoins are experiencing price congestion below their immediate price ceilings.
The coin has fallen almost 3% in the last 24 hours and is now trading below $26. However, the technical outlook for SOL remained bullish as demand and savings remained positive.
Since the altcoin managed to break above many resistance levels last week, the daily chart has yet to reflect bearish sentiment. If demand fluctuates, SOL could fall below its local support level.
Solana’s price fluctuates between $23 and $26, respectively. If the altcoin manages to break through the upper end of the range, then another rally could occur and move into bullish price action. Solana’s market capitalization has fallen at the time of writing, reflecting a surge in sellers.
Solana Price Analysis: One-Day Chart
At the time of writing, SOL is trading at $25.29. It traded relatively close to $26, the current upper ceiling. Demand for SOL needs another push for the price to break the $26 level.
If SOL manages to rise above this level, then the altcoin could try to trade around $29 before starting to correct.
Conversely, if buyers do not exert pressure, Solana could fall to $23 and then to $21. The amount of Solana traded in the last session was high, meaning that the coin experienced strong selling.
The altcoin has rebounded on the chart, as has its purchasing power, but as SOL has lost momentum over the last 24 hours, the purchasing power has eased a bit. The Relative Strength Index marked a decline, despite the fact that the indicator is above the 60 mark.
This value indicated that although the buying pressure had eased, the buyers had outperformed the sellers. Solana’s price was also above the 20 simple moving average (SMA) line, which means that the buyers were driving the price momentum in the market.
Despite the drop in value, SOL continued to display buy signals on the 1-day chart. Convergence-divergence of moving averages indicates price momentum and a change in trend. The indicator formed green histograms tied to buy signals.
Buy signals usually indicate an increase in price during the next trading session. The Awesome Oscillator also reads the price trend.
The indicator has formed green signal bars above the half-line, which indicates a bullish move. While the SOL continues to look buoyant, failure to overcome the upside resistance will see the price action of the altcoin decrease.
Credit : www.newsbtc.com