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- Solana’s price drops after struggling to breach the $25 price level.
- The trading volume shows a rise in selling interest amongst investors.
- SOL price dropped by about 9% in the intraday session.
Solana’s price declined massively and marked a drop of about 9% intraday. Recently, Helium migrated to Solana to achieve faster transaction speeds, scalability and reliability. Solana has recorded high volatility since Helium migrated to the network. The present price action defies the bullish trends and is set up for a downtrend trend. The falling prices can break the bullish momentum and test new support zones.
The Monoscope
Source: SOL/USDT by TradingView
SOL price broke the prevailing bullish momentum and dropped by about 9%, which can find support near $22.25. The fall in price increased the selling pressure in the market. The trading volume is also recording a gradual increase in seller interest. The Bollinger Bands diverge wide indicating volatility. The price drop narrows the distance between the price action and the EMA ribbon, indicating a bearish swing in the future. The OBV observed a downtick, signalling that the drop was unfavourable.
Source: SOL/USDT by TradingView
The recent drop in SOL price tried to break the bullish pattern. The Super Trends form a horizontal uptrend, which may end soon if the bears prevail. The CCI drops close to the zero mark showing a contracting gap between the present price and historical prices. The MACD converges to indicate a decline in buyers and recorded descending buyer bars. The RSI falls to the 50-range, reflecting a drop in buyer interest.
The Microscope
Source: SOL/USDT by TradingView
In the smaller time frame, SOL price declined steadily. The Super Trends mark the initial stage of a bear trend after a bullish momentum. The CCI rises closer to -100 from lower ranges indicating a recovering gap between present and historical prices. The MACD splits wide and records tall seller bars indicating increased participation. The RSI falls flat near the 30-range reflecting the current selling pressure in the market.
Conclusion
Solana price turns bearish despite the much-awaited Helium migration announced last year. The SOL price marks a dip of nearly 9%, creating a selling trend in the market. The increasing seller participation can amplify the bearish trend. The holders of SOL can watch the support near $22.25 for a price reversal.
Technical levels
Support levels: $22.25 and $20.80
Resistance levels: $25.00 and $26.25
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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.
