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Solana price analysis: SOL price continues to trend lower after dropping another 8 percent

Chainlink price analysis

TL;DR Breakdown

  • Solana price continued to suffer during the day’s trade, having dropped over 26 percent in the past two weeks
  • Buyers came late into the market to form some recovery after price had breached $192 support floor
  • Another dip below the support level could see SOL drop over 50 percent from current level

Solana price analysis for the day shows further decrements for the token, after price declined another 8 percent on the day’s trade. Price shipped as low as $186.37, before forming some recovery to go up to $196.88 at the time of writing. The token joined the larger cryptocurrency market in declining, which can be taken as the only positive, as price dipped over 26 percent in the past two weeks. Following the all-time high of $259.90 on November 6, traders have been keen on booking profits on the token which has resulted in the current reversal.

The larger cryptocurrency market exhibited massive declines over the past 24 hours, led by Bitcoin’s 5 percent drop to just below $58,000. Ethereum also shipped almost 5 percent to sit just above the $4,000 mark, as major Altcoins showed similar dips. Ripple and Cardano dropped 4 percent each, to sit at $1.05 and $1.80, respectively, whereas Dogecoin dropped almost 2 percent to go down to $0.22. The biggest losses were seen among Litecoin (10 percent) and Polkadot (9 percent) during the day’s trade.

Solana price analysis: SOL price continues to trend lower after dropping another 8 percent 1
Solana price analysis: Cryptocurrency heat map. Source: Coin360

SOL/USD 24-hour chart: Price dips below crucial EMAs to continue decline

No pretty sight can be seen on the 24-hour chart for SOL/USD pair as price continues to decline, moving past the crucial 20,50 and 100-day Exponential Moving Averages (EMAs). The Relative Strength Index value of 42 suggests there is ample room for consolidation in the token and that seller momentum is dominant in the current trend. Trading near the $192 support floor, any movement below this point would present a significant bloodbath for SOL, accelerating the downtrend towards $159.

Solana price analysis: SOL price continues to trend lower after dropping another 8 percent 2
Solana price analysis: 24-hour chart. Source: Trading View

SOL/USD 4-hour chart: Crucial make or break point ahead as price stages recovery

On the 4-hour chart for Solana price analysis, a minor effort to form a recovery upwards can be seen developing. Price currently sits well below the crucial 4-hour EMAs, and the RSI value of 31.71 gives dim reading. However, the recent downswing can be identified as a chance for buyers to get back into the market. If the nascent push is successful, price could jump back up towards $216.08. The Moving Average Convergence Divergence curve sits well below the neutral zone currently, below the 0 mark.

Solana price analysis: SOL price continues to trend lower after dropping another 8 percent 3
Solana price analysis: 4-hour chart. Source: Trading View

Solana price analysis: Conclusion

From technical indicators, it can be confirmed that Solana is currently facing a continued period of decline since touching its all-time high of $259.90 on November 6. Over the short-term, a minor push seems to be forming out of necessity which could be strengthened as buyers identify opportunity to invest in SOL at current trend. Any movement below the $192 support floor could see further plummeting for the token, whereas price could be set to move as high as $216 if the current push consolidates.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Razi Khan

Razi Khan

A Master's graduate in Renewable Energy Systems from England, UK, Razi is a tech-enthusiast. He's served as a content specialist for BlockPublisher in the US and has been an avid member of the crypto space as a journalist, trader, investor and analyst since 2018.

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