- Solana is currently trading around the $192 range.
- SOL’s trading volume has dropped by more than 26%.
The 1.84% loss has pushed the market cap down to $3.76 trillion. The fall has made the major crypto assets enter the bearish zone, losing momentum. Bitcoin and Ethereum are trading on the downside, at $111.1K and $4,000. Turning the attention toward the altcoins, Solana (SOL), within the downtrend, has plunged by over 4.76%.
This made the Solana bears gain more traction after a series of tests. In the early hours, as per CMC data, SOL traded at a high range of $208.33, and the bearish command has triggered the asset to fall to a bottom level of $192.70. At the time of writing, Solana traded within the $192.89 zone.
With its market cap touching $105.64 billion, SOL’s daily trading volume has dropped by over 26.92%, reaching $9.13 billion. Besides, the market has witnessed a liquidation of $33.58 million worth of Solana in the last 24 hours, as reported by the Coinglass data.
An analyst chart exhibits that, based on the technical analysis of Solana, the price could move upward to retest the resistance near the $260 range. However, if it fails to break that level, a pullback toward the support around $166 is possible.
Can Solana Price Reverse the Current Downtrend?
Solana’s Moving Average Convergence Divergence (MACD) line and signal line are found below the zero line, which indicates a bearish trend in the market. The asset is likely in a weak recovery phase. In addition, the Chaikin Money Flow (CMF) indicator, which is currently at -0.13, suggests selling pressure in the SOL market. The money is flowing out of the asset, and the negative value shows the possible continuation of a bearish phase.
Moreover, the price movement of Solana reveals the ongoing downtrend that might gradually trigger the death cross emergence. The asset’s price could slip to a range of $191. Further bearish pressure may bring in its subsequent support at around $190 or even lower.
Contrarily, assuming the bulls took control, the Solana price might climb to the immediate resistance at the $193 level. With a potential upside correction, the golden cross could take place, and the bulls may push the asset up for more gains to the crucial $194.
Furthermore, the daily Relative Strength Index (RSI) value of SOL is at 42.84, which implies its neutral to slightly bearish zone. If it drops below 30, the oversold condition may appear. While a move above 50 hints at recovery. Solana’s Bull Bear Power (BBP) reading of -7.10 signals strong bearish dominance in the market. The negative value shows that the sellers have a significant edge, with strong downward pressure.
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Source: https://thenewscrypto.com/solana-sol-slides-can-it-find-stability-before-the-next-decline/
