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The Solana price dropped more than 3% over the past 24 hours to trade at $90.37 at press time as SOL fell victim to the market-wide selloff.
The Solana Price Trapped in a Negative Channel
4-hour chart for SOL/USDT (Source: TradingView)
A descending price channel has formed on SOL’s 4-hour chart after the Solana price printed a series of lower highs and lower lows over the past few days. In the past 8 hours, however, the cryptocurrency rebounded off of the key support level at $85.
Traders are still exerting sell pressure on the Solana price, but bulls are determined to overcome this wave of sell activity. Should SOL continue to rise in the next 24 hours, it may attempt a challenge at the $97 resistance level. A break above this threshold will be a significant development, as it is also confluent with the upper boundary of the current price channel.
As a result, the Solana price may have the foundation needed to rise to the subsequent resistance level at $103 in the following 48 hours if it surpasses this price point. In an extreme bullish scenario, SOL could climb to as high as $110 in the short term.
This bullish thesis may be invalidated if the Solana price is rejected by the $97 barrier, or if it breaks below $85. This could then put the cryptocurrency at risk of dropping to the $80 support level.
A Potential Shift in SOL’s Trend?
Technical indicators on SOL’s 4-hour chart suggested that bulls were attempting a comeback. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators showed an uptick in buying power.
During the last few hours, the RSI crossed above its Simple Moving Average (SMA) line. This is a noteworthy bullish technical flag that generally signals that buyers have gained the upper hand against sellers. In addition to this, the MACD line was closing in on the MACD Signal line. These two lines intersecting could signal a bullish trend reversal for the Solana price in the next 48 hours.
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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