As a seasoned crypto investor with battle-tested nerves and a portfolio that has weathered more than a few market storms, I can’t help but feel a sense of deja vu as I watch Solana’s latest decline. The once-promising uptrend seems to have faltered, and the question on every trader’s lips is whether this bearish momentum will continue or if we’re about to see a new bullish chapter unfold.
It appears that Solana’s value has dipped again, dropping below the $137 support point, which suggests that negative momentum may be building up. The upward trend that was initially promising seems to have stalled, leaving traders and investors in a state of uncertainty about potential future losses. With increased selling activity, the question now is whether Solana can establish a new base or if it will continue to experience further price decreases at the hands of the bears.
Here, we’ll delve deep into the latest downturn of Solana that dipped beneath a crucial support point, scrutinizing the increasing bearish pressure, identifying crucial levels to keep an eye on, and speculating about potential future developments for Solana.
Currently, Solana is being traded around $131, representing a 4.67% decrease in value. Its market capitalization stands above $16 billion, and the daily trading volume has exceeded $1.6 billion. Over the past day, Solana’s market cap has experienced a drop of 4.65%, while its trading volume has significantly increased by about 92.92%.
How Low Can Solana Fall?
On the 4-hour chart, Solana (SOL) has noticeably changed direction towards a bearish trend. It has forcefully dropped below the significant $137 mark and the 100-day Simple Moving Average (SMA). This fall indicates a less robust technical setup, where sellers are dominating and pushing SOL towards the $118 support area. Of particular concern is the break of the 100-day SMA, a key indicator often monitored to gauge market trends, which suggests that the bearish momentum is intensifying and could potentially signal an extended period of declines.
Moreover, the Relative Strength Index (RSI) on the 4-hour graph has fallen beneath the 50% line, currently at 35%. As the RSI endeavors to dip further into overbought territory, it suggests that bears are gaining power, and if buying enthusiasm doesn’t resurface promptly, a potential decline may continue.
On its daily chart, Solana is showing significant negative movement, dropping below the 100-day Simple Moving Average and creating several bearish candlesticks as it approaches the $118 level. This continuous drop suggests strong selling activity and worsening market opinion, hinting at a higher chance of additional losses ahead. The consistent downward trend implies that the bears are dominating, which could mean more significant corrections for SOL in the short term.
In summary, the one-day Relative Strength Index (RSI) suggests that the bearish trend on SOL is becoming stronger. This is because the RSI has recently fallen to 43%, failing to surpass the 50% threshold, which indicates an increase in selling pressure and a rising warning signal for the cryptocurrency, suggesting potential downward movement.
Potential Support Zones To Watch For A Rebound
In the present downtrend that SOL is experiencing, important areas of potential stability to keep an eye on are around the price level of $118. This figure holds significance both psychologically and technically, as it might trigger a robust defense which could signal a turnaround or consolidation. If $118 proves insufficient, $99 may offer further support, having previously functioned as a pivotal point in history and potentially serving as a foundation for recovery.
If Solana manages to bounce back at any of these support points, it might initiate an upward trajectory towards the $137 resistance threshold. A convincing break above this barrier could indicate a transition into a bullish phase, possibly paving the way for additional growth as Solana aims for higher resistance thresholds.
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2024-09-16 13:34