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The Solana price plummeted over 9% in the last 24 hours to trade at $167.50 at press time.
The Solana Price Retesting Support
4-hour chart for SOL/USDT (Source: TradingView)
In the recent trading sessions, the Solana price has shown some intriguing movements on the 4-hour chart, capturing the attention of crypto traders and analysts alike. In the last 48 hours, the crypto has indicated a modest uptrend amidst market volatility.
A closer examination of the 9 EMA and 20 EMA reveals gradual declines for both indicators. This convergence towards lower values suggests that the bullish momentum is waning, potentially signaling a bearish reversal in the near term. The MACD indicator further corroborates this sentiment, with its value decreasing over time and the histogram consistently registering negative values, indicating bearish momentum.
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The Relative Strength Index (RSI) has fluctuated between 38.12 and 43.32, indicating that SOL is neither in the oversold nor overbought territory. However, this neutrality in RSI, combined with decreasing trading volumes, suggests a lack of strong buying interest and potential caution among investors.
Potential Trade Strategies
Looking ahead, traders should closely monitor the resistance level at $195.08 and the subsequent level at $208.08. A breakout above these levels could signal a shift towards a bullish market sentiment. Conversely, the support levels at $162.42, $149.28, and $141.17 are critical. A break below these could exacerbate selling pressure, pushing prices lower in a bearish trend continuation.
Given the current bearish indicators, traders might consider short positions, especially if the price fails to break above the $195.08 resistance level and shows signs of turning down from any of these critical points. A prudent entry point could be near the current resistance levels with a tight stop loss above $195.08 to manage risk effectively. Conversely, should the price action surprisingly turn bullish, breaking above the resistance, a long position could be considered, with an entry point above $195.08 and target levels near $208.08, employing a strict stop loss below $195.08 to safeguard against potential reversals.
The technical indicators and price action analysis of SOL on the 4-hour chart suggest a bearish outlook in the short term, with key resistance and support levels offering potential entry and exit points for traders. However, as the cryptocurrency market is known for its volatility, traders are advised to remain vigilant and adapt their strategies accordingly.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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