SOL Price Analysis: Here’s How Bears Control Solana Price Trend!
The post SOL Price Analysis: Here’s How Bears Control Solana Price Trend! appeared first on Coinpedia Fintech News
Struggling to sustain a positive trend, the SOL price trend displays a streak of lower high formations. Falling 35% from the swing high of $27 to test the $17.27 support level, the downtrend breaks the crucial EMAs and leads to a death cross.
Moreover, a bearish pattern arises with the recent failure of the bullish rally to cross above the 50-day EMA.
With a remarkable 15% recovery over the past week, the SOL price jumped to the high of $20. However, the psychological resistance of the crucial price level and the 50-day EMA led to a sharp 4% fall. Moreover, the fall aligns with the market correction as Bitcoin plunges below $27K.
The 4% fall makes a bearish engulfing and highlights an overhead resistance trendline, forming a bear channel. Currently, the SOL price hinges at the $19.45 level of the 61.80% Fibonacci level.
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Currently, the SOL price is trading at $19.64 with an intraday growth of 0.41%, the bullish sprout may soon hither away under bearish pressure. This hints at a potential downtrend continuation in the falling channel.
Technical Indicators:
With some hope left in the technical indicators, the MACD and RSI indicators are yet to reflect a significant change.
MACD indicator: The MACD and signal lines shift sideways with declining histograms, warning of a bearish crossover.
RSI indicator: The RSI line dips close to the halfway line but sustains above the 14-day SMA.
Will the SOL price Cross $20?
With the bearish channel in place and the downtrend set in motion, the chances of a bullish reversal in SOL price seem minimal. The volatility close to $19.45 is razor-sharp and might soon result in a quick move on either side.
The SOL price must remain above $19.45 for buyers to retake the $20 level and prepare for a breakout. On the flip side, a steep correction to $17.27 is possible if the price fails to hold.
Filed under: Bitcoin - @ September 22, 2023 6:01 am