In recent trading, Solana has struggled to surpass its previous yearly peak, leading to a continued downward trend. The coin, currently ranked 5th in the cryptocurrency market with 440,961,455 SOL in total supply and a market capitalization of $58.2 million, has experienced a significant 25% drop from its peak of $118.88, sparking concerns about its future trajectory.

As of the latest data, SOL is trading at around $102.63, marking a 2.76% increase but residing below the 100-day moving average over the past 24 hours. Furthermore, on the daily chart, a bearish candlestick formation hints at the prevailing bearish sentiment.

Given that Solana’s price is currently below the 100-day moving average, questions arise regarding a potential shift from an uptrend to a downtrend in the market.

Insights from Solana’s 4-Hour Chart

Examining the 4-hour chart reveals that the price levels of $118.88 and $114.87 now function as resistance levels following previous price action. Additionally, the price has broken below the support level of $103.57, possibly setting the stage for a move towards the $92.84 support level as the next target.

On the 4-hour chart, the MACD indicator reflects a bearish outlook with the histogram trending below the zero line. Both the MACD line and signal line have crossed below the zero line, indicating further potential downward movement for SOL.

Looking at the Bull Power Vs. Bear Power Histogram indicator on the same chart, the histograms are situated below the zero line, indicating a loss of momentum among buyers and a shift in favor of sellers, further supporting a downward price trajectory.

Potential Scenarios if SOL Price Continues to Decline

If the downward trend persists, there is a likelihood of SOL testing the $92.84 support level. Further decline could see the price targeting the $79.32 support level.

Currently, Solana has experienced a minor 1.3% positive movement within the last 24 hours, according to CoinMarketCap.

SOL bulls struggle to maintain price at $102 | Source: SOLUSD on Tradingview.com

Featured image from Coinfomania, charts from Tradingview.com

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell, or hold any investments, as investing inherently carries risks. It is advised to conduct thorough research before making any investment decisions, and any actions taken based on the information provided are at the reader’s own risk.

FAQs

What factors are influencing Solana’s current price movement?

Various technical indicators such as moving averages, MACD, and Bull Power Vs. Bear Power Histogram are signaling a bearish outlook for Solana, contributing to its current downward price trend.

Where can I find real-time data on Solana’s price movements?

For up-to-date information on Solana’s price fluctuations, platforms like CoinMarketCap and Tradingview.com offer real-time data and chart analysis.

Should I consider investing in Solana amidst its current price decline?

Before making any investment decisions, it is crucial to conduct thorough research, assess risk tolerance, and consider consulting with financial advisors to make informed choices, particularly during volatile market conditions like those affecting Solana currently.