- Solana price analysis suggests further downwards movement
- SOL faces resistance at the $50.00 mark
- The closest support level lies at $20.00
The Solana price analysis shows that the bears have bled out more than 50 percent of the asset’s price action and the sell-off shows no sign of stopping anytime soon.
The broader cryptocurrency market has observed a bearish market sentiment over the last 24-hours as most major cryptocurrencies record negative price movements. Major players include FIL and AVAX, with a 32.92 and a 32.78 percent decline respectively.
Solana price analysis: SOL falls below $50
Across the technical indicators, the MACD is currently bearish, as expressed in the red color of the histogram. Furthermore, the darker shade of the histogram shows an increasing bearish momentum across the short-term charts as the SOL price freefalls, shedding more than 50 percent of its market cap over the last seven days. If the freefall continues, SOL might be falling to returning to levels untouched since August 2021.
The EMAs are currently trading low as the Solana price analysis shows a net bearish price movement over the past five days. Furthermore, the 12-EMA still moves with a steeper gradient from the 26-EMA suggesting an increasing bearish pressure across the short term. This is dangerous for SOL traders which have already observed a bloodbath for the better half of May.
The RSI has been trading low near the oversold region since 5 May, showing a bearish trend across the mid-term charts. The indicator dived into the oversold region yesterday as the selling pressure increased and has continued to delve deeper after showing a slight retracement as the bulls tried and failed in fighting back.
The Bollinger Bands are wide at press time as SOL observes record high price volatility across the 4-hour charts. Currently, the bears dominate the market as traders sell to escape a dying market. At press time, the indicator’s bottom line provides support to the bulls at $44.27, while the mean line presents a resistance level at $63.00.
Technical analysis for SOL/USDT
Overall, the 4-hour Solana price analysis issues a sell signal, with 15 of the 26 major technical indicators showing support to the bears across the timeframe. On the other hand, only one of the indicators supports the bulls, showing little to no bullish presence in recent hours. Meanwhile, the remaining ten indicators sit on the fence and do not issue any signals at press time.
The 24-hour Solana price analysis shares this sentiment and also issues a strong sell signal with 17 major technical indicators suggesting movement downwards against only one of the indicators suggesting an upwards movement. The analysis reinforces the bearish dominance while showing a slight bullish pressure across the mid-term charts. At the same time, eight indicators remain neutral and do not support either side of the market.
What to expect from the Solana price analysis?
The Solana price analysis shows that the SOL market is bleeding at a high rate as traders fall prey to FUDs surrounding the markets. While many HODLers and long-term traders cut their losses, certain investors see this as an opportunity to rake in the rewards of the next bull market.
Currently, traders should expect the Solana price analysis to continue crashing as traders flee from the bleeding market. The price action should be expected to fall towards the $20.00 price level where the key support lies. However, if the rapid sell-off continues, the bulls may not be able to hold the level and the price would fall to $10.00.
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