Solana (SOL) has been under the bear rule, with its price retracing from an intraday high of $20.76 to an intraday low of $20.16, where support levels were tested. SOL was still under a negative impact at the time of writing, leading the price to plummet to $20.31, a 2.28% decrease from its previous close.
The market’s perception of SOL remains uncertain as investors closely monitor price swings for signs of a probable rising trend. The declines in market capitalization and 24-hour trading volume of 2.13% and 10.98%, respectively, to $7,824,355,979 and $377,069,022, demonstrate the market’s shaky trust.
If the bearish trend continues and the support level at $20.16 is breached, the next support levels to monitor are $19.80 and $19.00, which might lead to more selling pressure from traders and investors. But, if SOL manages to break over the resistance level of $21, it might suggest a possible reversal of the present slump and draw additional buyers into the market.
The bearish trend in Solana may continue since the Bull Bear Power (BBP) has entered the negative territory with a rating of -0.57. This adverse trajectory is expected to continue since the BBP trend indicates that selling pressure in the market is more significant than buying pressure.
But, if the BBP line reverses direction and crosses above the zero line, it might indicate a shift in momentum towards the bulls, leading to a bullish trend in Solana.
The Know Sure Thing (KST) rating of 6.8786 and movement over its signal line indicate that the bear hand is losing grip of the Solana market. This notion is because the KST is a momentum oscillator that helps detect trends and possible trend reversals. Its present reading signals a trend reversal and potential bullish momentum soon.
After making a bearish crossover on the SOL/USD 4-hour price chart, the 100-day MA reads 21.14, while the 20-day MA reads 20.67, indicating that the short-term trend is now bearish. This crossover implies that the price may continue to fall in the near future, potentially finding support at the 50-day MA, which currently sits at 19.80.
To add to the negative trend, the price action swings below both MAs, indicating that traders may be selling off their holdings, and the momentum is turning downward. This trend is a warning signal to those intending to take long positions.
The MACD line’s recent drop into the negative zone with a value of -0.09 and movement below its signal line supports the market’s bearish mood. It suggests that SOLUSD has additional downside potential.
The histogram is also steadily declining, adding to the negative view. As a result of these indications, traders should carefully monitor the market movement and consider taking short positions if the price falls below the 50-day MA support line.
As SOL struggles to break out of its bearish trend, traders should be cautious and monitor support levels closely, but a bullish reversal may be on the horizon.