Despite its initial peak earlier in the year, the value of Solana has been on a downward trajectory, failing to surpass its previous high. This cryptocurrency, currently holding the 5th position in the crypto market, boasts a total supply of 440,961,455 SOL and a market capitalization of $58.2 million. The recent drop of over 25% from its peak of $118.88 raises concerns about its future direction.
At the moment, SOL is showing a minor increase of 2.76%, trading around $102.63, positioned below the 100-day moving average over the last 24 hours. The daily charts display a bearish candlestick, indicating the ongoing bearish sentiment in the market.
The 100-day moving average serves as a crucial indicator of an asset’s trend, signaling either an uptrend or downtrend. With Solana’s price currently below this moving average, speculations arise regarding a potential shift from an uptrend to a downtrend.
Insights from the 4-Hour Chart
A closer examination of Solana’s 4-hour chart reveals significant resistance levels at $118.88 and $114.87 resulting from past price movements. The breach of the support level at $103.57 suggests a possible decline towards the next support level at $92.84.
Analyzing the 4-hour chart with the MACD indicator indicates a bearish trend as the MACD histogram trends below the zero line. Both the MACD line and signal line crossing below the zero line further support the bearish outlook for SOL’s price.
Additionally, the Bull Power Vs. Bear Power Histogram reveals a market scenario where sellers have gained control as buyers lose momentum. This imbalance predicts a continued downward movement in price.
Potential Scenarios with Continued Price Decline
If the current downtrend persists, SOL could target the $92.84 support level, with further downside potential towards $79.32 upon breaching this level.
As per data from CoinMarketCap, Solana currently shows a minor 1.3% upside movement in the last 24 hours.
SOL bulls struggle to maintain price at $102 | Source: SOLUSD on Tradingview.com
Image credits: Coinfomania, charts sourced from Tradingview.com
Disclaimer: This article is intended for educational purposes only and does not reflect the views of NewsBTC on investment decisions. Readers are strongly encouraged to conduct their research before engaging in any investment activities, as investment carries inherent risks. Any reliance on the information provided is at the reader’s discretion and risk.
