Solana price has been in a strong downtrend, forming lower lows since the formation of the annual high at $32.13 on 14 July 2023. The cryptocurrency price has fallen approximately 37% from the annual high. Recently, SOL price entered into a narrow consolidation zone ranging between $22.50 and $25.30.
The cryptocurrency price consolidated for more than 20 days. On 17 August 2023, the price finally broke the support level and melted to form a support at $20.20. Solana’s price attempted to rise above the support several levels and turned resistance of $22.50 but was not successful.
If the price breaks below the $20.20 support level, it might head down toward $19. The bulls are trying to form a support at the $20 psychological level but the bearish pressure is pushing the price downward. To gain bullish strength, the price needs to close above $22.50 in order to rise toward $25.30.
Network Activity of Solana
In the last 3 months, the daily active addresses of Solana have declined by 41.2%, reaching 195,981. The daily active addresses peaked on 26 June reaching 355,700 since then there has been a downfall.
The daily transaction peaked on 12 June, reaching 26.36 Million since then, there has been a drastic fall. In the last 3 months, the daily transaction has dropped 41%, reaching 14.22 Million.
However, the total value locked has witnessed an increase of 14.9%, amounting to $312.1 Million. The decentralized exchange volume has also declined by 56.3% to $19.1 Million.
The market capitalization has dropped by 0.12% to $8,263,465,927 and the 24-hour trading volume has decreased by 2.4% at the time of writing.
Will SOL Price Fall Below $20?
The cryptocurrency price has dropped below 20,50,100 and 200-day exponential moving averages, indicating bearish momentum. The 20-day EMA has also crossed all the major EMAs negatively.
Chaikin money flow (CMF) score is -0.02 indicating slight weakness in the market. CMF has been hovering near the 0 mark indicating chances of consolidation. The relative strength index trades at 37.55 suggesting bearish momentum in the price.
The Bollinger bands have also slightly expanded indicating a rise in volatility. The long/short ratio is 0.94 with 48.46% longs and 51.54% shorts indicating a higher pressure from the selling side in the last 24 hours.
Conclusion
The market structure and price action of Solana show that the price is forming lower lows and is in a downtrend. The cryptocurrency price is trying to form a strong support at $20 and regain bullish momentum.
Technical Levels
- Major support: $19 and $15.85
- Major resistance: $22.50 and $25.30
