- Solana price analysis is bearish today.
- SOL/USD is currently trading at $246.
- Selling pressure has returned over the past hours.
The bearishness of the Solana price analysis is reinforced today, as we anticipate the $250 mark to hold, bringing the market back down. As a result, we expect SOL/USD to decline and test the previous low at $231.
Our confidence in this projection comes from a divergence of the RSI and the MACD. A bearish cross in both indicators over the past hours reinforces our view that we will see SOL/USD declining back to $231 levels shortly, within days.
Further evidence of this scenario is given by the fact that seller pressure has returned over the past hours, after the altcoin rallies of early May. The $259 ATH is not to be taken lightly, as it is the third time that the market reaches this price level.
Thus, we believe that SOL/USD will continue declining today, and remain bearish for the days ahead. Should sellers fail to defend $231 levels in the short term, we might see the market selling off towards $200.
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SOL/USD 4-hour chart: SOL to retrace again?
The Solana price is approaching bearish momentum on the 4-hour chart, following testing the $250 resistance for a second time.
Solana’s price action has been sideways for the majority of October, following a big increase in September. Following an all-time high of $220 on the 25th of October, there was a retracement.
The price of SOL/USD fluctuated for more than 24 hours before suddenly rising to $250. When the Solana price reached a new high on Thursday, it was repelled downward.
The $250 resistance has been tested four times in quick succession. SOL/USD is currently trading at $246.
The Bollinger Bands on the 4-hour chart have contracted, showing an increase in volatility. Although it looks like volatility will decrease over the next hours, we see a high level of short-term.
The RSI on the 4-hour chart has reached overbought levels, showing that sellers are becoming exhausted. The MACD is on the verge of reaching bearish momentum on the same timeframe, marking an increase in selling pressure.
We are now in the third attempt to break through $250. Bearish momentum resumed as soon after the $250 level was breached, indicating that the market is yet unwilling to rise.
Solana Price Analysis: Conclusion
The Solana price analysis suggests that we may see a further decline in SOL/USD over the next few days. If the market is unable to maintain above $240, there is a risk of seeing a drop towards $200.
In the short term, we expect SOL/USD to decrease and test its previous low at $231. However, if the bears are unable to defend $231, the market may go further towards $200.
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