Solana Prices Southern; Will it revisit $80 soon?


Solana is down nearly 6% in value in the past 24 hours as the broader market started to get choppy. Bitcoin traded below $40,000 while Ethereum broke the $3,000 support level.

The world market’s currency cap was $1.94 trillion after falling 6% in the past day.

Solana had seen a significant recovery on the charts as it broke through subsequent price caps over the past week.

The coin had managed to revisit the $110 level, where the coin had been around about three times in the past week. After the recent dip, buyers decided to exit the market as the coin witnessed a sell-off, as seen on the four-hour chart.

Solana Price Analysis: Four Hour Chart

Solana is approaching its immediate support level on the four hour chart. Image source: SOL/USD on TradingView

Solana cost $100 at the time of writing. The altcoin lost nearly 6% of its value in the past 24 hours. SOL had noticed a sharp recovery on April 18, challenging its $110 resistance line.

As of going to press, SOL was aiming for the nearest $96 support level. The coin was trading in a bearish trendline meaning SOL could continue its downward trajectory. On the four-hour chart, this indicated that Solana was undergoing a price correction.

If the bears continue to dominate, Solana would immediately drop by 4%. A drop from the $96 price level would push prices towards $87 and then eventually experience an 18% decline in value, reaching $80.

Trading volume had fallen but was in the green, which could also mean that buying pressure was building at the time of writing.

Related literature | Will Bitcoin See Another Big Drop Soon? Historical trend can say yes

Technical analysis

Solana faced increased selling pressure on the four-hour chart. Image source: SOL/USD on TradingView

Solana had experienced a period of buying pressure as the currency rose on April 18. At the time of writing, the mint witnessed a surplus of sellers.

On the Relative Strength Index, the indicator was seen below the half-line, indicative of increased selling power, but there was a slight rise in the RSI. This uptick could mean that purchasing power would increase during the next trading sessions.

On the 20-SMA, SOL was placed below the 20-SMA line. This referred to sellers driving the price momentum in the market.

Solana continued to show a downward trend on the 4-hour chart. Image source: SOL/USD on TradingView

Solana was in an ongoing price correction, as can be seen from the chart above. MACD, which is responsible for determining market momentum, indicated the market was bearish. On the above indicator, the coin has exhibited a bearish crossover at the time of writing.

It also showed small red histograms indicating that SOL would continue with negative price action. Investing in Solana doesn’t seem like a wise decision right now. To give the coin some respite, it had to move above $110 and trade over it for a significant period of time.

The Parabolic SAR determining a stop loss order has shown dotted lines above the price candlesticks, which is synonymous with a negative price movement.

Related literature | Bitcoin Under Pressure Near $40K, Here Are 2 Reasons That Could Change Soon

Featured image from Unsplash.com, charts from TradingView.com

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