- Solana price analysis suggests a downwards movement to $38.
- SOL faces resistance around the $44 mark
- The closest support level lies at $39
The Solana price analysis shows that SOL was unable to set up a support level above the $44.00 mark and sharp bearish activity has caused the price to fall to the $40.00 mark with further downwards movement to follow.
The broader cryptocurrency market observes a bearish market sentiment over the last 24-hours as most major cryptocurrencies record negative price movements. Major players include ETH and BTC recording a 6.27 and a 5.63 percent decline respectively.
Solana price analysis: SOL falls below $40.00
The MACD is bearish as expressed in the red color of the histogram showing an increase in the selling pressure across the 4-hour charts. Furthermore, the indicator shows high bearish momentum at press time as observed in the steep depth of the indicator. Moreover, the dark color of the histogram shows an increasing bearish momentum as the price falls below the $40.00 support level.
The EMAs are currently trading low as net price movement over the last five days remains negative. However, as the price action returns to the $40.00 support level, the bulls can be expected to fight back causing the EMAs to move upwards across the short-term charts. The 12-EMA is currently moving at a steeper slope than the 26-EMA suggesting a further increase in bearish momentum.
The RSI was neutral for the past 20 days but now has dived into the oversold region suggesting little room for further downwards movement. However, the indicator does not issue an immediate buy signal as it trades above the 20.00 index unit level. Currently, the index is trading at 29.42 and moving upwards suggesting an increasing buying acitivity in the markets.
The Bollinger Bands are wide at the moment and show further divergence as the price action tugs at the bottom limit of the indicator. As the bears break down below the $40.00 mark, the Bollinger Bands would only continue widening to facilitate the volatile price movement. At press time, the indicator’s bottom line provides support at the $39 mark, while the mean line presents a resistance level at the 44.63 mark.
Technical analyses for SOL/USDT
Overall, the 4-hour Solana price analysis issues a sell signal with 14 of the 26 major technical indicators supporting the bears. On the other hand, only seven indicators support the bears showing a low bullish presence in recent hours. At the same time, five indicators sit on the fence and support neither side of the market.
The 24-hour Solana price analysis shares this sentiment and also issues a sell signal with 14 indicators suggesting a downwards breakdown against three indicators suggesting an upwards movement. The analysis reaffirms the bearish dominance across the mid-term charts while showing little buying activity for the asset across the mid-term charts. Meanwhile, nine indicators remain neutral and do not issue any signals at press time.
What to expect from Solana price analysis?
The Solana price analysis shows that after recovering to the $48.00 mark, SOL was unable to continue the bullish movement and the following bearish movement erased all gains and caused the price to fall below the $40.00 mark. At press time, the bulls are struggling to defend the $40.00 mark in order to prevent further downwards movement.
Traders can expect SOL to continue moving downwards as the price action continues to observe steady bearish movement across the 4-hour charts. The price can be expected to fall to the $38.00 mark before stabilizing, however, if the bulls are unable to hold the support level, SOL may continue its downwards movement to the $36.00 mark.