Solana price analysis is showing bearish signs today as price dropped heavily, recording a 9 percent decline over the past 24 hours. SOL showed some promise after dropping down to $40.14 on May 27, 2022 as it formed a steady increment towards resistance at $50. However, the 9th biggest cryptocurrency in terms of market cap faced yet another rejection around the $48 mark as sellers took over the market.
Price could now be headed towards the lower support region at $38.65 if the current trend intensifies. However, buyers are also expected to come in at a discounted price at that point. The 24-hour trading volume for Solana dropped more than 30 percent, also exhibiting a bearish state of market for the token.
The larger cryptocurrency market crashed once again after yesterday’s uptrend, as Bitcoin dropped down to $30,300 with a 6 percent decline. Ethereum had failed to move above the crucial $2,000 mark even yesterday, and dropped further down to $1,800 with a 5 percent dip. Among major Altcoins, Ripple shed 3 percent to move down to $0.40, while Cardano crashed 8 percent down to $0.56. Dogecoin also dropped 5 percent to move as low as $0.08, whereas Polkadot retraced more than 6 percent to $9.70. Tron recorded the only major increment across the market with a 6 percent uptrend to take price up to $0.08.
Solana price analysis: Market valuation shows sharp descent on daily chart
On the 24-hour candlestick chart for Solana price analysis, price can be seen showing a distinct decline after a steady period of upward movement. Price faced rejection around the $48 mark, failing to close above the first resistance floor at $50 and is now headed towards support at $39.65. Over the current downtrend, SOL has also fallen below the 20 and 100-day moving averages, along with the crucial 50-day exponential moving average (EMA) at $44.61.
More significantly, the daily relative strength index (RSI) is undergoing a distinct decline into the oversold region and currently sits at 32.66. The moving average convergence divergence (MACD) curve is forming lower lows but continues to sit above the neutral zone with the possibility of making a bearish divergence over the next 24 hours. The current downtrend could be capped around the first support at $39, where buyers are expected to come into the market. However, if the RSI continues to shed further into the oversold region a revisit of the May 12, 2022 low of $37.39 could come into play.
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