- Solana price analysis suggests a downward movement to $11.00
- The closest support level lies at $11.80
- SOL faces resistance at the $12.00 mark
The broader cryptocurrency market observed a bearish market sentiment over the last 24 hours as most major cryptocurrencies recorded negative price movements. Major players include BNB and ETH, recording a 2.33 and a 1.49 percent decline, respectively.
Solana price analysis: SOL struggling at $11.80
The MACD is currently bullish, as expressed in the green colour of the histogram. However, the indicator shows low bullish momentum as observed in the low height of the histogram. Moreover, the indicator’s lighter shade suggests that the bullish momentum has started to decrease as the price action consolidates around the $12.00 mark.
The EMAs are currently trading below the mean position as net price movement over the last ten days remains negative. However, the two EMAs are moving upwards suggesting a bullish correction in the markets. On the other hand, as the two EMAs converge, the bullish momentum dies down suggesting an increase in selling activity in the markets.
The RSI dipped briefly into the oversold region a few days ago but quickly resurfaced and continued to trade in the neutral zone till press time. Now, the index is trading at the 38.07 unit level with a horizontal gradient. The indicator does not issue a signal at the moment while the low slope suggests a lack of momentum on either side which hints at low volatility across the short term.
The Bollinger Bands were expanding to facilitate the volatile movements but narrowed as the price stabilized at the 12.00 mark. Since then, the bands started to converge as the volatility died down in the struggle for dominance. At press time, the indicator’s bottom line provides support at $11.80 while the upper limit presents a resistance level at the $12.42 mark.
Technical analyses for SOL/USDT
Overall, the 4-hour Solana price analysis issues a strong sell signal, with 15 of the 26 major technical indicators supporting the bears. On the other hand, only three of the indicators support the bulls showing a low bullish presence in recent hours. At the same time, eight 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 downward movement against only three of the indicators suggesting an upwards movement. The analysis shows bearish dominance across the mid-term charts while significant buying pressure exists for the asset across the same timeframe. Meanwhile, nine indicators remain neutral and do not issue any signals at press time
What to expect from Solana price analysis?
The Solana price analysis shows that strong bearish momentum enabled the bears to cause a price drop to the $12.00 mark. However, the bulls found support at the level that enabled them to stabilize the price action. Regardless, the bearish pressure rose once again as the price fell to $11.80 before recovering to $11.88 again
Traders should expect SOL to observe a downward breakdown as the price falls down to the $11.00 support level. The suggestion is supported by the mid-term technicals which are highly bearish suggesting strong downward movement. SOL can be expected to drop to $11.00 mark before stabilizing at the level.