This morning, the market opened with a 1.46% slip. The broader sentiment still lingers in extreme fear, with most of the crypto assets charted in red, and some in green. Both the largest tokens, Bitcoin (BTC) and Ethereum (ETH), are trading on the downside. Meanwhile, Solana (SOL), one of the popular coins, has posted a 3.2% loss in value.
The asset’s price action exhibits a series of upticks, declines, and key tests over the last few days. In the early hours, SOL traded at a high of $85.85, and instead of continuing the uptrend, the bears entered and pulled the price back to a low of $80.57. If the downtrend gains more traction, the momentum may face deeper losses.
At the time of writing, Solana trades at around $82.30, with its market cap at $46.82 billion. Consequently, the daily trading volume has reached the $3.23 billion mark after a brief spike. According to Coinglass data, the market has experienced an event of liquidation of $11.89 million worth of SOL in the last 24 hours.
Assuming the active downtrend triggers the emergence of the death cross, the Solana price could retrace and test the support at $80.38. A steep drop below this level intensifies the losses and pushes the price even lower, below $78.21.
On the flip side, upon Solana climbing to the $84.75 range, the bullish pressure could strengthen and initiate the golden cross to take place. Gradually, it might set the stage for the altcoin price to potentially rise above the $86.80 mark.
Solana’s Technical Chart Points to a Broader Downtrend
The Moving Average Convergence Divergence (MACD) line of Solana is settled below the signal line. As both lines are below the zero line, the short-term average is below the long-term average, confirming a broader downtrend. The momentum may continue to favour bears unless a crossover occurs.
Moreover, the Chaikin Money Flow (CMF) indicator is positioned at -0.12, pointing toward a modest selling pressure in the SOL market. With this value, the capital is flowing out of the asset, showing the distribution trend. Significantly, if it plunges further below zero, the selling bias would get stronger.
Solana’s Bull Bear Power (BBP) reading of -2.91 indicates strong bearish dominance. The value is notably below zero, displaying that the bears have sturdy control over the bulls. The larger the negative value, the stronger the selling strength.
Furthermore, the ongoing market sentiment of SOL is in a weak to neutral bearish zone, as the Relative Strength Index (RSI) is at 39.47. The sellers have a slight edge, and there are chances that it may enter the oversold territory, below 30.
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