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- 1 The SOL price is trading under a bear trend within the 200 EMA while.
- 2 Recently, the SOL price broke its support level with a strong momentum.
- 3 The value of the SOL coin is seeing a rise of 6.81% within the last week on the daily chart.
For the past few months, the price of SOL coins has been trading under significant selling pressure. The price is presently taking severe resistance from the 100 EMA on the daily timeframe. The price action suggests that the token can see further depreciation in its value within the next few weeks. The buyer’s opinion regarding the price is gaining a bullish edge which may create a positive impact on the price.
The technical indicators are taking a bearish turn,100 and 200 EMA are presently giving major resistance to the price whereas the Ocilators are steadily reaching the overbought level which aligns with the movements price action is making.
SOL price is presently at $20.61. It has a total market capitalization of $8.2 Billion.
Appreciation in Bullish Sentiment and Medium Volume
The investor’s opinion regarding the SOL price is taking a bullish edge. Total bearish sentiment metrics have increased by 24.99% whereas the bearish sentiments among the investors have declined by 19% According to LunarCrush.
A rapid increase is also observed in the medium volume of 15% which suggests that the community is getting more engaged regarding the token.
Previously, near early January the SOL gave an exceedingly bullish rally of more than 95% followed by which it took a small correction and made a double bottom pattern. As was estimated in the previous analysis the price continued its bear trend after attempting to make a restest. After breaking its support near 100 EMA the price made a downturn of more than 20% within the next 7 days.
Technical Analysis (On 1 Day Timeframe )
The RSI line is currently testing the median line above the 14 SMA. At present, the value of the RSI line is 49.79 points and the 14 SMA is giving support to it around 43.97 points. The making of a downward curve by the RSI is suggesting that it might start moving toward the oversold zone.
Conclusion
The sentiments of the investors have been in the fear zone. At present, SOL price is taking a strong resistance from the 100 EMA; trading under the 200 EMA on the daily time frame. If the price takes rejection from the current level, it can give a downfall of 9% to 24% in the near future according to the analysis.
Technical levels –
Support – $20.00 and $16.00
Resistance – $22.00 and $23.92
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
