SOLANA is trading at crucial daily support. This is due to the bearish price action seen at the beginning of this year as the price failed to break above the $26 Mark. This led to a fall of almost 40%.
- SOL/USDT is up 3.79% today
- SOL/USDT is trying to bounce from its daily support level of $15.40
SOL/USDT is trading at $15.88 as the market is in green as of today. The price managed to recover 23.2% from its recent dip at $12.76. The overall trend is very bearish and the price is trying to reclaim the support of $15.40. Bulls are struggling here as the selling pressure is high. At this point, prices can turn downwards anytime.
The Daily chart shows the breakdown of the support trendline
After analyzing the daily chart, one can conclude that the price is following this bearish downtrend since the start of this year. This sell-off is mainly because the bulls were unable to penetrate the level of $26 after trying multiple times. With each failed effort, the bears started to capitalize and increase the intensity of selling. This resulted in the breakdown of the $20 zone which was again an important support.
A trendline can be observed which was providing support to the price. A breakdown forced the price to tumble down to the current levels. According to the technical analysis, there is a high probability that the price might try to reach the bottom of the trendline which is at $9.58. This is the next important support zone. If this happens, SOL can lose 40% of its value from the current market price. The bulls must stay vigilant as the price is still under the daily 200 EMA. The price is expected to take a rejection from the 9 and 15 EMA which is expected in a downtrend.
The 4H chart shows short-term consolidation.
On the 4H Chart, The price is consolidating in the short term. The market is taking a pause after a volatile trading session. Price can be seen crossing the 9 and 15 EMA. But this shouldn’t excite the bulls as much,as the volume is declining. If Price is able to bounce back, it will encounter its first hurdle at $20 along with the 200 EMA. A flip of these technical levels will give the bulls more confidence to push the price higher.
According to the technicals, the price is still trading in bear territory and they control the market here. Investors must remain vigilant and follow proper risk management. On the downside, the level of $9.58 is very important. A breach of this level will mean an extension of the bear market and prices could go very low.
RSI
The RSI indicator is currently at 59.33 and the RSI has crossed the MA line towards the upside. This is a sign of bullish to sideways market condition.
MACD
The MACD indicator made a bullish crossover. The MACD is still below the 0 line indicating that the market is still bearish.
200 EMA
As observed, on the 4hr, the price is trading below the 200 EMA(exponential moving average) which acts as a significant resistance. This is a clear indication of a downtrend where the sellers are in control and for a trend reversal, the price must break and trade above the 200 EMA.
Technical levels
Support Levels: $15.40 – Support 1
$09.48 – Support 2
Current Price: $15.80
Resistance Levels: $20.03 – Resistance 1
$26.03 – Resistance 2
Conclusion
SOL is under bearish influence and experienced massive selling in the market. This turmoil left the investors worried. The current market conditions suggest a 50% chance of a downfall. This is because the price is still above the support level of $15.80. If bulls cannot sustain here, the chances of downfall will increase significantly. On The upside, the price has a potential of at least 62% towards the level of $23. It is important to stay cautious as the trend is still bearish.
