Solana is down 7% over the past 24 hours and declined below the $35.50 price mark. Bears have taken over the cryptocurrency market and overall altcoins have fallen on their charts. Solana is also in bearish price action despite posting minor gains on the hourly chart.
Despite the gains, the bears will try to contain the price movement as the technical outlook paints a negative picture. Bitcoin remains close to the $20,000 mark, while other market movers are also struggling at the time of writing.
The altcoin is dangerously close to the $35 support line. However, the bulls continued to defend the next support line at $30. Buying strength also remains low in the market, with increasing selling pressure, SOL may decline again and trade near the $30 price level.
Global cryptocurrency market cap today. $941 billion with a decline of 2.6% in the last 24 hours.
Solana price analysis: 4-hour chart
SoL has been optimistic with a double-digit gain of 20 per cent over the past week. SOL remains one of the altcoins that has recovered substantially in a week. Despite the correction, the bulls are tired of propelling the price.
As soon as the chart showed a descending triangle, tied for a decline in price, the SOL followed on the chart and declined. At the time of writing, Solana was trading at $35.65. The coin is likely to experience strong resistance at the price level of $38.
A fall from the current price level will pull the SOL price down to $30 and then to $26. The SOL traded in volume declined in the previous trading session, indicating that buying power has not fully increased.
SOL has seen an increase in buying power but there is a chance that buying power may decrease in the immediate trading session. The Relative Strength Index saw a rise above the halfway line indicating that buyers are outselling sellers on the four-hour chart.
However, it is too early to conclude whether the coin will continue to maintain this price momentum. The coin barely managed to cross the 20-SMA line, which indicated that selling power is still present in the market. However at press time, buyers were picking up on the price movement in the market.
Reading Tips | Bitcoin Stable After Falling Above $20K to $17K – Slow Climb in the Green?
Moving average convergence divergence shows the price movement and trend reversal. The indicator went through a bearish crossover and formed a red histogram. The start of these histograms was a sell signal for the coin. This could be linked to the fall in prices for SoL.
Average Directional Trend is responsible for recording the strength of the current trend. ADX was moving closer to the 20-mark with a downtick, indicating that the trend was losing strength which again pointed to a continued bearish trend in the market.
Related Reading | Cardano (ADA) Rises Upside After Consolidation, What To Expect Next?
Featured image from UnSplash, chart from TradingView.com