Solana Price Analysis: SOL Recovery In Jeopardy After Sudden Rejection At $31.5

Last Updated July 23rd 2021
2 Min Read
  • Solana opened the day in the green but ran into immense selling pressure at $31.5.
    • Bulls anticipate SOL to secure support at $28 ahead of another liftoff toward $40.

    Solana is trading in the green alongside other selected few crypto-assets such as Aave and Stellar. Over the last week, SOL has suffered under the strong arms of the bears, whereby the down leg stretched from highs around $38 to the primary support at $28.

    Solana Price Abandons The Uptrend

    A sharp recovery emanated from the anchor at $28, lifting Solana above $30. Nevertheless, a barrier at $31.5 prevented the bulls from stretching their arms to close the gap to $40. With a correction below $30 underway, the primary goal is to hold at $28 to allow bulls to stage attack assault missions on the stubborn resistance zones.

    A death cross pattern emphasizes the bearish outlook, suggesting that declines will keep gaining momentum in the near term. The pattern appeared when the 50 simple Moving Average (SMA) crossed below the 100 SMA on the four-hour chart.

    Note that the last time a similar pattern formed on Solana’s chart was on June 18 and led to a massive downswing from $38 to $18. Hence, investors should be open to another correction and perhaps prepare accordingly.

    SOL/USD four-hour chart

     SOL/USD 4-hour chart 071521

    Looking At The Other Side Of Solana’s Picture

    Solana could soon resume the uptrend despite the rejection at $31.5 due to a buy signal flashed by the SuperTrend indicator. This technical tool tracks the trend of an asset and overlays the chart like a moving average. It incorporates the average true range in its calculations, in turn sending bearish or bullish signals.

    A call to buy Solana recently came into the picture when the SuperTrend closed the day below the price, changing the color from red to green. Realize that Solana will remain in a generally up-trending market as long as the technical outlook remains unchanged.

    SOL/USD four-hour chart

    SOL/USD 4-hour chart 2 071521

    At the same time, the Moving Average Convergence Divergence (MACD) indicator seems to be calling investors into the market to take their positions as the uptrend solidifies. A buy signal flashed when the 12-day exponential moving average crossed above the 26-day EMA.

    The odds for bulls gaining more control over Solana will increase as the MACD moves closer to the mean line (0.00) and crosses into the positive region.