Solana Falls Below $35.60, Where Is The Coin Headed Next?

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Orig­i­nal­ly post­ed here.
By: anush­samal

Overview

Solana over the last 24 hours reg­is­tered a loss of 7% and fell below the $35.50 price mark. The bears have mauled the cryp­tocur­ren­cy mar­ket and over­all alt­coins have fall­en on their charts. Solana also is under the bear­ish price action despite reg­is­ter­ing minor gains on the hourly chart. Despite the gain, bears will try to hin­der the price move­ment as tech­ni­cal out­look paint­ed a neg­a­tive pic­ture. Bit­coin con­tin­ues to remain close to the $20,000 mark while oth­er mar­ket movers also keep strug­gling at the time of writ­ing. The alt­coin is dan­ger­ous­ly close to the sup­port line of $35. The bulls how­ev­er have con­tin­ued to defend the next sup­port line of $30. Buy­ing strength also remains low in the mar­ket, with increased sell­ing pres­sure SOL could again dip and trade near the $30 price lev­el. The glob­al cryp­tocur­ren­cy mar­ket cap today is $941 Bil­lion with a fall of 2.6% in the last 24 hours. Solana Price Analy­sis: Four Hour Chart SOL has been opti­mistic over the past week with dou­ble dig­it gain of 20%. SOL has remained one of the alt­coins that have recov­ered con­sid­er­ably over the week. Despite the recov­ery, the bulls are tired of push­ing the price up. As the chart flashed a descend­ing tri­an­gle which is tied to fall in the price, SOL fol­lowed through and declined on the chart. At the time of writ­ing, Solana was trad­ing at $35.65. The coin might wit­ness stiff resis­tance at the $38 price lev­el. A fall from the cur­rent price lev­el will drag price of SOL to $30 and then to $26. The vol­ume of SOL trad­ed in the last trad­ing ses­sion fell sig­ni­fy­ing that buy­ing strength hasn’t ful­ly picked up. Tech­ni­cal Analy­sis SOL flashed an increase in buy­ing strength but there is a chance that buy­ing strength might dip over the imme­di­ate trad­ing ses­sion. The Rel­a­tive Strength Index not­ed an uptick and was seen above the half-line indi­cat­ing that buy­ers out­num­bered sell­ers on the four hour chart. It is how­ev­er too soon to con­clude if the coin will con­tin­ue to main­tain this price momen­tum. The coin bare­ly man­aged to move over the 20-SMA line which indi­cat­ed that sell­ing strength was still present in the mar­ket. At press time how­ev­er, buy­ers were dri­ving the price momen­tum in the mar­ket. Sug­gest­ed Read­ing | Bit­coin Steady Above $20K After Drop To $17K – A Slow Climb To Green? Mov­ing Aver­age Con­ver­gence Diver­gence depict the price momen­tum and trend rever­sals. The indi­ca­tor went through a bear­ish crossover and formed red his­tograms. The onset of these his­tograms were a sell sig­nal for the coin. This can be tied to incom­ing price decline for SOL. Aver­age Direc­tion­al Trend is respon­si­ble for reg­is­ter­ing the strength of the cur­rent trend. ADX was mov­ing close to the 20-mark with a downtick, this sig­nals that the trend was los­ing strength which again point­ed towards con­tin­ued bear­ish­ness in the mar­ket. Relat­ed Read­ing | Car­dano (ADA) Moved Upwards After Con­sol­i­da­tion, What To Expect Next? Fea­tured image from UnSplash, chart from TradingView.com

The Post

Solana over the last 24 hours reg­is­tered a loss of 7% and fell below the $35.50 price mark. The bears have mauled the cryp­tocur­ren­cy mar­ket and over­all alt­coins have fall­en on their charts. Solana also is under the bear­ish price action despite reg­is­ter­ing minor gains on the hourly chart.

Despite the gain, bears will try to hin­der the price move­ment as tech­ni­cal out­look paint­ed a neg­a­tive pic­ture. Bit­coin con­tin­ues to remain close to the $20,000 mark while oth­er mar­ket movers also keep strug­gling at the time of writing.

The alt­coin is dan­ger­ous­ly close to the sup­port line of $35. The bulls how­ev­er have con­tin­ued to defend the next sup­port line of $30. Buy­ing strength also remains low in the mar­ket, with increased sell­ing pres­sure SOL could again dip and trade near the $30 price level.

The glob­al cryp­tocur­ren­cy mar­ket cap today is $941 Bil­lion with a fall of 2.6% in the last 24 hours.

Solana Price Analy­sis: Four Hour Chart

Solana was priced at $35.65 on the four hour chart | Source: SOLUSD on TradingView

SOL has been opti­mistic over the past week with dou­ble dig­it gain of 20%. SOL has remained one of the alt­coins that have recov­ered con­sid­er­ably over the week. Despite the recov­ery, the bulls are tired of push­ing the price up.

As the chart flashed a descend­ing tri­an­gle which is tied to fall in the price, SOL fol­lowed through and declined on the chart. At the time of writ­ing, Solana was trad­ing at $35.65. The coin might wit­ness stiff resis­tance at the $38 price level.

A fall from the cur­rent price lev­el will drag price of SOL to $30 and then to $26. The vol­ume of SOL trad­ed in the last trad­ing ses­sion fell sig­ni­fy­ing that buy­ing strength hasn’t ful­ly picked up.

Tech­ni­cal Analysis

Solana reg­is­tered an uptick in buy­ing strength on the four hour chart | Source: SOLUSD on TradingView

SOL flashed an increase in buy­ing strength but there is a chance that buy­ing strength might dip over the imme­di­ate trad­ing ses­sion. The Rel­a­tive Strength Index not­ed an uptick and was seen above the half-line indi­cat­ing that buy­ers out­num­bered sell­ers on the four hour chart.

It is how­ev­er too soon to con­clude if the coin will con­tin­ue to main­tain this price momen­tum. The coin bare­ly man­aged to move over the 20-SMA line which indi­cat­ed that sell­ing strength was still present in the mar­ket. At press time how­ev­er, buy­ers were dri­ving the price momen­tum in the market.

Sug­gest­ed Read­ing | Bit­coin Steady Above $20K After Drop To $17K – A Slow Climb To Green?

Solana dis­played sell sig­nal on the four hour chart | Source: SOLUSD on TradingView

Mov­ing Aver­age Con­ver­gence Diver­gence depict the price momen­tum and trend rever­sals. The indi­ca­tor went through a bear­ish crossover and formed red his­tograms. The onset of these his­tograms were a sell sig­nal for the coin. This can be tied to incom­ing price decline for SOL.

Aver­age Direc­tion­al Trend is respon­si­ble for reg­is­ter­ing the strength of the cur­rent trend. ADX was mov­ing close to the 20-mark with a downtick, this sig­nals that the trend was los­ing strength which again point­ed towards con­tin­ued bear­ish­ness in the market.

Relat­ed Read­ing | Car­dano (ADA) Moved Upwards After Con­sol­i­da­tion, What To Expect Next?

Fea­tured image from UnSplash, chart from TradingView.com

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