Solana Price Analysis: SOL throwing kicks of a dying horse while massive losses under $30 beckon
- Solana price bulls put a fierce fight to secure support at $33 amid rising overhead pressure.
- Multiple sell signals suggest that bears are bound to gain complete control over SOL in the short term.
Solana is trading within the confines of an ascending parallel channel. Live data by CoinGecko shows that price has remained relatively unchanged in the last 24 hours. Following a minor 0.2% loss, SOL is teetering slightly above $33. It has attracted a $3.2 billion trading volume across all exchanges in the same period. Solana is the 14th largest crypto asset, boasting $9.1 billion in market capitalization.
Solana Price On Verge Of A Major Correction
As mentioned, SOL is holding within the ascending channel. Note that the lower boundary provides immediate support in addition to the buyer congestion at $33. A break under these two key levels would open the Pandora box, triggering massive sell orders.
The 50 Simple Moving Average (SMA) is in line to offer support if the declines stretch toward $30. Other support areas to keep in mind include the 200 SMA, currently at $30.69, and the 100 SMA at $29.5.
Despite the vital support areas, the push for a downswing cannot be ignored. A comprehensive look at the short-term technical outlook emphasizes the bearish outlook.
Realize that the Moving Average Convergence Divergence (MACD) sent a sell signal at the beginning of August. The sell signal manifested as the 12-day exponential moving average crossed under the 26-day EMA. Subsequently, the bearish signal was later reinforced as the MACD closed the gap to the mean line. Currently, the trend-following tool stands at 0.426, while a drop into the negative region would cement the sellers’ position in the market.
SOL/USD Four-Hour Chart
Simultaneously, the Relative Strength Index (RSI) highlights a growing bearish front, emphasized by the reversal from the overbought area. The RSI holds at the midline at the time of writing. Note that continuous movement to the oversold region will add gasoline to fire as bears get more aggressive, pushing for losses under $30.
Looking At Solana’s Bullish Picture
Intriguingly, the SuperTrend indicator has sustained a buy signal since July 20. The call to go all-in on SOL allowed bulls to control the narrative from $22 to highs of $37. This technical tool follows the trend of an asset like a moving average. However, it utilizes the average true range (ATR) in its calculations, sending bearish or bullish signals.
SOL/USD Four-Hour Chart
A daily close below price implies that Solana is in the buy zone. The indicator’s color also changes from red to green. With this technical picture sustained, we can anticipate the resumption of the uptrend toward $40.