Solana [SOL] might see an extended decline unless the bulls…

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

Solana’s [SOL] recent movements corresponded to the fear sentiment as it dipped below its south-looking EMA ribbons. While the altcoin invalidated the bullish tendencies and broke down from its falling wedge, the $28-mark support has provided immediate grounds.

A close above the six-week trendline resistance could open up short-term recovery opportunities, provided the bulls continue to boost the buying volumes. At press time, SOL traded at $32.3375, up by 8.42% in the last 24 hours.

SOL Daily Chart

Source: TradingView, SOl/USD

SOL’s decline from the $85-mark made way for a bear run that accounted for a 72.7% 40-day decline (from 6 May). Consequently, it gravitated to touch its 11-month low on 14 June.

As the selling pressure intensified, the alt refrained from inflicting a northbound breakout from its month-long falling wedge (white).

The bounceback from the $28-support provoked a bullish hammer in the daily timeframe. This candlestick could give the bulls much-needed hope to break above the $32-$34 range resistance. 

Should the current candle close as green, the buying strength would reaffirm the potential effectiveness of this hammer. Also, SOL registered a nearly 51% spike in 24-hour volumes alongside the daily gains.

A compelling close above the six-week trendline resistance (yellow) could place the alt in a position to test the Point of Control (POC, red) in the $39-zone.

As the wider market stood conducive for the sellers, the EMA’s south-looking trend would likely halt the near-term buying efforts.


Source: TradingView, SOL/USD

The RSI, at press time, was on a slight uptrend but hit the 39-ceiling while the sellers still claimed an edge. Also, over the last four days, the OBV’s higher peaks saw a bearish divergence with the price. This reading entailed a potential short-term slowdown in the coming sessions.

Furthermore, the DMI lines visibly revealed a bearish edge. Until the gap between these lines registers significant improvements, investors/traders could avoid placing calls.


SOL’s recent bullish hammer alongside the uptick in buying volumes can propel a short-term recovery. But for that, bulls need to topple the $32-$34 range.

While the indicators suggested a bearish edge, SOL could likely continue on its south-looking trend in the coming days. Finally, keeping an eye on Bitcoin’s movement would be vital in making informed calls.

This news is republished from another source. You can check the original article here

Be the first to comment

Leave a Reply

Your email address will not be published.