Solana depreciated by almost 6% over the last 24 hours as the broader market started to get choppy. Bitcoin was seen trading below the $40,000 mark while Ethereum broke the support level of $3,000.
The global market currency cap stood at $1.94 Trillion after a fall of 6% over the past day.
Solana had depicted considerable recovery on charts as it broke subsequent price ceilings over the past week.
The coin managed to revisit the $110 level which it hovered near thrice in the past week or so. Following the recent dip, buyers decided to exit the market as the coin witnessed a sell-off as seen on the four-hour chart.
Solana Price Analysis: Four Hour Chart
Solana was priced at $100 at the time of writing. The altcoin lost close to 6% of its value over the last 24 hours. SOL had noted a sharp recovery on the 18th of April and it challenged its resistance mark of $110.
At press time, SOL was aiming for its nearest support level of $96. The coin was trading in a descending trendline, which signifies that SOL could continue in its downward trajectory. From the four-hour chart, it signaled that Solana was undergoing a price correction.
If the bears continue to exert dominance, Solana would immediately fall by 4%. A fall from the $96 price level would push prices to $87 and then finally undergo a depreciation of 18% and land at $80. Trading volume had dipped but was in the green, which could also mean that buying pressure was increasing.
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Technical Analysis
Solana had experienced a bout of buying pressure when the coin soared on April 18th. At the time of writing, the coin witnessed a surplus of sellers.
On the Relative Strength Index, the indicator was seen below the half-line which is indicative of increased selling strength, however, there was a slight uptick in the RSI. This uptick could mean that buying strength would pick up over the next trading sessions.
On the 20-SMA, SOL was placed underneath the 20-SMA line. This referred to sellers driving the price momentum in the market.
Solana was on a continued price correction as seen from the above chart. MACD which is responsible for determining the market momentum indicated bearishness in the market. On the aforementioned indicator, the coin displayed a bearish crossover at the time of writing.
It also displayed small red histograms which signified that SOL would continue on negative price action. Investing in Solana at the moment doesn’t seem to be a wise decision. For the coin to see some respite, it had to break above the $110 price mark and trade over it for a considerable period of time.
The Parabolic SAR which determines a stop-loss order has demonstrated dotted lines above the price candlesticks which is synonymous with a negative price movement.
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Featured image from Unsplash.com, charts from TradingView.com