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The Solana price dropped more than 8% in the last 24 hours to trade at $138.72 at press time.
Solana Price Loses Key Support
4-hour chart for SOL/USDT (Source: TradingView)
In the past few trading sessions, the Solana price has witnessed heightened volatility, oscillating within a relatively wide range. Analyzing the recent 4-hour chart movements reveals a market struggling to establish a clear direction amidst conflicting technical indicators.
Closing prices over the analyzed period fluctuated notably, ranging from a low of $134.91 to a high of $144.06. This variability indicates indecision among traders and a lack of consensus on SOL’s short-term trajectory. Furthermore, the exponential moving averages (EMAs) paint a similar picture, with both the 9 EMA and 20 EMA showing a downward trend, reflecting recent bearish sentiment in the market.
The Moving Average Convergence Divergence (MACD) indicator adds another layer to the analysis, exhibiting a negative histogram over the period under review. The MACD histogram consistently indicates a bearish divergence, suggesting potential downward pressure on SOL’s price in the near term.
Potential Reversal on the Cards
On the other hand, the Relative Strength Index (RSI) displays a mixed signal. While the RSI values have generally remained below the 50 mark, indicating a bearish momentum, they have occasionally veered into oversold territory, signaling a possible reversal. This divergence in RSI behavior further underscores the uncertainty surrounding SOL’s future movements.
Examining key support and resistance levels provides additional insights for traders. Resistance levels at $139.18, $148.27, and $148.98 represent critical thresholds that could impede upward price movements. Conversely, support levels at $133.73, $126.76, and $119.24 offer potential buffers against downward pressure.
Considering these technical indicators and support/resistance levels, traders should exercise caution when initiating positions. For long trades, potential entry points may present themselves if SOL manages to break above the $139.18 resistance level. However, given the prevailing bearish sentiment, it is advisable to wait for confirmation before entering long positions.
Conversely, short trades could be considered if SOL breaches the $133.73 support level. In such a scenario, traders may look for entry opportunities to capitalize on further downward momentum. Nevertheless, stringent risk management strategies should be employed to mitigate potential losses, especially in the face of market volatility.
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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