SOL Technical Analysis: Monday Blues Hits 8% Fall in Solana

Key technical points:

Past Performance of SOL

As mentioned in our previous analysis, SOL prices plummeted after the bearish breakout of the 100-day SMA (orange line) under $80, resulting in a prolonged downtrend in motion. The downfall came with a significant rise in selling pressure and multiple bearish engulfing candles, cutting 55% of the market's value within two weeks, starting from April 29th. Finally, however, the buyers began a coup over the weekends, resulting in a V-shaped reversal from $36 to a retest of $60.

Source-Tradingview

SOL Technical Analysis 

SOL price action shows a failed three-white soldiers pattern approaching the $60 resistance level. The formidable sellers at the crucial threshold pushed the rally 9% today, with 17 hours left on the clock at press time.

Over the last few weeks, the increased selling pressure undermines the bullish crossover of 50 and 100-day SMAs. The sideways trend after crossover succumbs under bearish powers and takes a nosedive, increasing the chances of regaining bearish alignment.

After a double bottom breakout in the oversold zone, the RSI slope surpasses the 14-day SMA and shows a retest as the price retraces. Furthermore, the DI lines in the DMI indicator show a high possibility of a bullish crossover as the bearish spread decreases.

In short, the SOL technical analysis depicts an increase in volatility as the bull cycle takes a hiccup.

Upcoming Trend

Suppose the sellers at the $60 resistance level push down the SOL prices deeper under $50; the downtrend will breach the $43 mark. However, the bullish reversal resulting in a lower price rejection will surpass $60 to reach the $80 mark.

Support Levels: $50 and $43

Resistance Levels: $60 and $80