- SOL continues to trade sideways under the pressure of the 20 EMA on the 4-hour chart
- The current price of SOL is $25.72 established on the back of a 2.51% increase in the last 24 hours
- The SOL/BTC pair is currently trailing at 0.0008031 BTC with a minor gain of 0.15%
SOL kickstarted today’s session by bouncing from a low of $25.65 to a high of $29.75. After peaking in May, SOL’s prices contracted by 50% bottoming up from $24.
Despite the fact that SOL witnessed another corrective wave after a reversal, its price plunged right back inside the demand zone. Further southward movement is most likely to guarantee a reversal on account of aggressive buyers present in the range of $26-$19.
The fact that the 20 EMA is on the verge of transpiring a bearish crossover with the 50 EMA will alert the bears. Such a scenario will allow SOL to retrace down to its previous lows and grab the support of around $23.96.
The current price action is extremely unconvincing based on the fact that SOL violated the macro support trend line. The efforts of the bulls to reminisce back towards preceding highs worked out to be inadequate as evidenced by a fakeout.
SOL has been a victim of bloodshed momentum as demonstrated by the vertical resistance trend line on the daily chart. It is anticipated that a breach of the trendline will cause a further dip in price in the upcoming sessions.
Considering a drop in Bitcoin Dominance, immediate term resistances are projected at $31.39 and $33.68. The violation of either of these levels will suggest the prevalence of the bulls. However, SOL is no exception to following in Bitcoin’s footsteps. Bitcoin has a further negative momentum ahead of its current price which will also lay a negative outlook for SOL.
Solana Price Chart on the 4-hour time frame
The 4-hour price chart of SOL is successfully highlighting the contradiction of the 20 EMA in impairing the efforts of the bulls. This particular barrier laid by the 20 EMA is bolstered by the bearish 0.236 FIB retracement. Rejection from this level will expose SOL to the support of $25.
The Relative Strength Index (bearish) is currently heading below the equilibrium range after illustrating a case of bearish divergence ahead.
On the contrary, the Moving Average Convergence Divergence (bullish is at the brink of entertaining a bullish crossover which will proceed the histogram into the positive territory.
The Crypto Volatility Index (cautious) is currently flashing 71, which means traders must brace themselves for significant price fluctuations ahead. SOL is subjected to extreme volatility for the next 2 weeks concerning a red CVIX.
CONCLUSION: SOL is expected to continue its sluggish momentum as a consequence of 20 EMA on the 4-hour chart and 100 EMA on the daily chart restricting its momentum. The success of the 20 EMA to chase the 100 EMA will outline a death cross situation for SOL.
Investments in altcoins are subjected to market risks and Bitcoin dominance. Investors should conduct their due diligence before investing.
SUPPORT : $25
RESISTANCE : $31 and $33
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Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.