Solana had significantly recovered from the lows it touched in November and December. Currently, the SOL price is stuck below the $26 mark, which has caused the altcoin to lose further value.
Over the last 24 hours, Solana fell by 0.7%, which indicated that the coin was range-bound on its chart. In the past week, the altcoin hasn’t moved much, either. The technical outlook also pointed towards increased bearishness for Solana.
Demand for the altcoin also decreased as accumulation dipped on the chart over the past few days. A continued fall in demand will cause the bearish momentum to gather strength and fall beyond the nearest support line.
Since Bitcoin hit the $24,000 mark, the bulls started to fade for the coin as it has been stuck under the price above the mark for over a week. This drop in Bitcoin price caused other major altcoins to fall on their respective charts. For SOL to break past the immediate resistance, broader market strength is mandatory. At the moment, SOL is trading 90% below its all-time high, which it secured in 2021.
Solana Price Analysis: One-Day Chart
The altcoin was trading at $24.70 at the time of writing. Over the past few days, the altcoin has been stuck under the $26 price mark, reflecting lateral trading.
This price oscillation ranged between $20 and $26. The immediate price ceiling of SOL was at $26; if the coin doesn’t topple that mark, SOL can drop to $22.
The altcoin’s nearest support was $22, but a drop to that level would cause SOL to trade below the $20 mark. On the other hand, if the coin registers considerable demand, it can cross the $26 price mark and aim for $30. The amount of SOL traded in the last session declined, indicating a fall in buying strength.
Technical Analysis
SOL was overbought in the past few weeks, but the coin has retraced from the overvalued zone as demand weakened. Buyers continue to overpower sellers.
The Relative Strength Index was above the 60-mark, but there was a slight fall in demand; it also indicates that buying strength remained on the chart.
The price of Solana moved slightly above the 20-Simple Moving Average (SMA) line, which meant that buyers were in charge of the price momentum. However, the coin was on the verge of falling below the 20-SMA if demand fell further. This implied that SOL might fall on its chart in the coming trading sessions.
Other technical indicators have also shown that demand for the altcoin has decreased daily. The Moving Average Convergence Divergence (MACD), which depicts the price momentum and trend reversal, formed red signal bars, which meant that it was a signal to sell, often followed by a further dip in price.
Similarly, the Chaikin Money Flow was also negative; it indicates capital inflows and outflows at a given time. The indicator moved below the half-line, which meant a fall in capital inflows for the altcoin.