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The Solana price dropped more than 4% in the last 24 hours to trade at $173.61 at press time.
The Solana Price Bounces Off of Support
4-hour chart for SOL/USDT (Source: TradingView)
Over the past 48 hours, the Solana price has shown notable movements on the 4-hour chart, hinting at potential future trends for traders and investors to consider. The pair’s closing prices have moved through a descending pattern, starting from a high of $180.68 and recently touching down to $172. This movement suggests a bearish momentum, which is further corroborated by various technical indicators.
The 9 Exponential Moving Average (EMA) and 20 EMA trends offer insights into the short-term and slightly longer-term momentum of SOL. The 9 EMA has declined from $180.016 to $176.984, and similarly, the 20 EMA has decreased from $179.867 to $178.304. The narrowing gap between these EMAs indicates a weakening of the bullish momentum over the recent sessions. However, it’s crucial to monitor if the 9 EMA will cross below the 20 EMA, as such a bearish crossover could signal further downtrends.
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The Moving Average Convergence Divergence (MACD) provides a deeper understanding of the market dynamics. Initially, the MACD showed a smaller histogram value, which later widened negatively. This transition from positive to negative histogram values suggests that the bearish momentum is gaining strength. Particularly, the latest histogram value of -0.397 indicates a strong bearish momentum, as the MACD line diverges further below the signal line.
The Relative Strength Index (RSI) has also transitioned towards bearish territories, dropping from 50.67 to 37.51. This descent into the oversold region could either signal a potential reversal point or confirm the strong bearish sentiment if the RSI remains low.
With respect to key technical levels, the recent price actions have SOL wrestling with a crucial support level at $171.7. A definitive break below could see the pair targeting further support at $169.82. On the flip side, any reversal above this point may encounter resistance at $175.98, followed by stronger barriers at $180.73 and $182.74.
Possible Trade Ideas
For traders considering entry and exit points, a break below $171.7 could serve as a bearish entry signal, targeting subsequent support levels for exits. Conversely, a rebound from current levels or a breakout above $175.98 might offer bullish entry points, with $180.73 and $182.74 as potential targets for exits.
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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