Solana is an efficient open-source project which relies on the permissionless nature of blockchain technology to provide decentralized financial ( DeFi) solutions.
Although the concept and initial development started in 2017, Solana was officially launched in March 2020 by the Solana Foundation with headquarters in Geneva, Switzerland.
Solana is well-known as a cryptocurrency due to the rapid processing times that blockchain provides. Solana's hybrid protocol permits significant reductions in the time required for validation of both smart contract and transaction execution. With lightning-fast processing speeds, Solana has attracted a large amount of interest from institutions in addition.
Let us move ahead to read about SOL technical analysis.
The SOL coin price continues to resonate within the falling wedge pattern in the daily chart as sellers drive the trend. The coin price falls upto 30% in the past two weeks as it makes a lower high in the ongoing correction phase. As the price retraces from the resistance trendline, the price breaks below the $100 mark.
The SOL coin price continues a downfall as it retraces from the resistance trendline and breaks below the psychological barrier of $100. The coin price may shortly reach the $80 support level.
The crucial Exponential Moving averages showcase a death cross, bearish crossover between 50 and 200-day EMA in the daily chart. Hence, the EMAs reflect a rise in bearish attention for the coin.
The RSI indicator shows the slope taking a steep reversal from the central line in the daily chart. Moreover, the slope may shortly give a bearish crossover with the 14-day SMA resulting in increased selling pressure.
The Stochastic RSI indicator shows a reversal in the K line as it prepares to give a bearish crossover with the D line. Hence, the indicator reflects the end of bullish cycle and hints at a bearish reversal.
In a nutshell, the technical indicators suggest a bearish reversal to the $80 mark. Therefore, traders can find selling opportunities in the SOL coin at current prices.
The SOL coin price break shows a reversal within the falling wedge pattern and hints a downfall to the $80 mark. However, long-term traders can find a better opportunity with the breakout of the wedge pattern.
Therefore, sellers at current prices can target the downfall to the $80 mark with a stop loss above $100.