- Trading volume’s decline hints at diminishing market enthusiasm for Solana.
- Broader market correction aligns with Solana’s recent bearish undertones.
- Immediate support levels remain crucial for potential bullish reversals.
Recent market data unveils Solana’s struggle against a prevailing bearish influence. Despite bullish attempts, the price has found it challenging to climb past specific points, notably the $20 mark, signaling a strengthening bear grip. Recent market patterns further solidify this trend as Solana slipped below a previously rising trendline, now trading beneath the formidable $20 resistance.
In a more in-depth look, after reversing from the 50-day EMA, Solana’s price confirmed the presence of a downtrend channel. This significant slump of 35% saw the price drop from a recent high of $27 down to the support at $17.27. Such declines breaking essential EMAs, culminating in a dreaded death cross, raise eyebrows. Additionally, a discouraging pattern emerged when the latest optimistic rally failed to surpass the 50-day EMA.
Current statistics show Solana trading at a price of $19.72, marking a 1.8% decrease over the last day. Additionally, a noticeable 12% reduction in trading volume over the same period suggests a waning market enthusiasm that leans more towards a bearish sentiment. The current trading volume is approximately $3.29 billion, with Solana’s market capitalization pegged at nearly $5.95 billion.
Reflecting on the past week, Solana experienced an impressive 15% revival, briefly touching the $20 mark. However, the dual resistance from the 50-day EMA and the psychological $20 level induced a rapid 4% downturn. This decline coincided with the broader market correction, mirroring Bitcoin’s drop below $27K and forming a bearish channel emphasized by a bearish engulfing.
Immediate support for Solana hovers around the $19.30 mark. If the bears maintain their pressure, there’s a potential retest of the $19.00 support. On the flip side, a bull resurgence pushing past $19.90 could set the stage for another attempt at the elusive $20 level.
The daily technical indicator for the token favors the bears. The relative strength index (RSI) is currently below the 50 level, indicating a bearish sentiment. Moreover, the moving average convergence divergence (MACD) is also in the bearish zone, with both lines below the zero line. The 20-EMA is also trading below the 50-EMA, indicating a downtrend. The average directional index (ADX) also shows a strong bearish trend, with the -DI line above the +DI line.
