Solana had dropped significantly in the last 24 hours and was approaching its critical support line. The technical prognosis for the coin has been gloomy. However, the coin attempted to bring the bulls back a few days ago.
At the time of writing, SOL was trading near the August 2021 level. As the bulls were defeated, buyers also departed the market. The coin’s price has now found support at the R584 mark. With the bears applying pressure and sellers dominating the market, Solana may struggle to maintain its price above R584 once more.
Major resistance for the coin remains above R676, and if SOL regains bullish strength, the coin may see further upward in the coming trading sessions. The worldwide cryptocurrency market worth was R19.8 trillion today, down 2.6% in the last 24 hours. SOL was trading at R600 at the time of publication, remaining above the R584 support level. With the bears returning, it is probable that Solana targets will fall below the immediate support line. The closest support line following R584 was at R523. The altcoin had been oversold in the previous week; as of press time, the coin was trading above the oversold region. Despite being above the oversold region, the coin has been under severe selling pressure as a result of the recent drop.
The Relative Strength Index fell, indicating a lack of buyers in the market. The price of SOL was noted to be below the 20-SMA line, indicating that sellers were driving the market’s price momentum.
Continued selling momentum would likely exacerbate the bearish price action; but, a push with consistent demand could bring Solana over the 20-SMA line.
With the coin creating a bearish descending triangle, SOL could target the R462 price support line. Given that Bitcoin has also marginally retraced on the chart, market weakness could explain why Solana’s upward advance has paused.
The coin’s overhead resistance was set at R677, after which the cryptocurrency may find another obstacle at R908. The coin’s volume traded in the previous session had fallen and was now red in colour. On the charts, this meant bearishness. The technicals have portrayed a mixed-signal, with the indicators on the chart leaning more towards the bears. The Chaikin Money Flow, which measures capital outflows and inflows, has remained below the half-line.
Despite an increase in the CMF, capital outflows surpassed capital inflows. The Awesome Oscillator flashing green signal bars is another optimistic signal.
The indicator is concerned with portraying price momentum and its potential reversal.
A buy indication was shown by the green signal bars. If buyers heed the signal, bulls may see some relief on the chart.