Solana price analysis reveals that the token has been on a downtrend for the past few days after enjoying some brief respite above the $50 mark. The coin started to decline around the same time Bitcoin began to drop and has not been able to recover since. At the time of writing, SOL was trading at $39.65, with a market cap of $3.45 billion. The 24-hour trading volume of the token was recorded at $1.36 billion.
The Parabolic SAR indicator placed below the candlesticks suggests that the bearish momentum is likely to continue in the near term. The MACD also showed signs of a bearish crossover as the signal line moved above the histogram. The Relative Strength Index dipped below the 50-level, which indicated that the selling pressure was likely to intensify in the market.
On the 4-hour Solana price analysis chart, Solana formed a descending triangle pattern, which is typically a bearish reversal pattern. This pattern develops when the price makes lower highs and finds support around a horizontal level. A breakdown from this pattern would suggest that the token could drop to $38 in the short term.
Solana price analysis: SOL falls below $40.00
The Bollinger Bands were also squeezed together, which indicated reduced volatility in the market. A breakout from the current range could result in a sharp movement in either direction.
The RSI was trading in the oversold zone, which suggested that the selling pressure in the market was likely to ease up soon.
The token found strong resistance around the $44 level, and a further climb above this level would open up the path for SOL to move towards its next target of $50. On the downside, a break below $39 could result in the token hitting its next support level of $38.
SOL/USD 4-hour price chart: Recent price developments
Overall, the 4-hour Solana price analysis issues a sell signal with 14 of the 26 major technical indicators supporting the bears. On the other hand, only seven indicators support the bears showing a low bullish presence in recent hours. At the same time, five indicators sit on the fence and support neither side of the market.
The 24-hour Solana price analysis shares this sentiment and also issues a sell signal with 14 indicators suggesting a downwards breakdown against three indicators suggesting an upwards movement. The analysis reaffirms the bearish dominance across the mid-term charts while showing little buying activity for the asset across the mid-term charts. Meanwhile, nine indicators remain neutral and do not issue any signals at press time.
What to expect from Solana price analysis?
The 4-hour and 24-hour Solana price analysis both suggest a bearish breakdown in the near term. The token is likely to drop to its next support level at $38. A further break below this level could result in the token hitting $35. On the upside, the first resistance level lies at $44, and a break above this level would open up the path for SOL to move towards $50.
The market sentiment for Solana is bearish, with 12 out of the 28 technical indicators issuing a sell signal. The MACD and the Parabolic SAR both suggest that the bearish momentum is likely to continue in the near term. On the other hand, the Bollinger Bands have squeezed together, which indicates reduced volatility in the market. A breakout from the current range could result in a sharp movement in either direction.
After rising back above the $48.00 mark, SOL was unable to continue its bull run and suffered a bearish reversal, resulting in losses of all gains and causing the price to drop below $40. After bottoming at $45.20, the bears are currently fighting to defend the $40.00 level in an attempt to prevent further
Solana price analysis: Conclusion
The market sentiment for Solana price analsis is bearish, with 12 out of the 28 technical indicators issuing a sell signal. The MACD and the Parabolic SAR both suggest that the bearish momentum is likely to continue in the near term. On the other hand, the Bollinger Bands have squeezed together, which indicates reduced volatility in the market.