SOL Technical Analysis: Sellers Break $40, Prices Soon To Cut Half

Key technical points:

Past Performance of SOL

Bearish influence growing on SOL prices degrades the market value by 70% in April, resulting in the fallout of a psychological mark of $50. The downfall regains the momentum after the retest of $60, resulting in the inverted rounding bottom pattern breakout. Finally, the fallout comes with a decline of 30% in the last week, breaking under the $40 mark.

Source-Tradingview

SOL Technical Analysis 

SOL price shows a resurgence of bearish powers evident by the boom in selling pressure as the bearish pattern provides a launchpad for sellers. Hence, the sellers can find an entry spot in the current market with a target at the following price action level.

The Vortex indicator shows the VI lines regaining the bearish alignment after avoiding the crossover. Showing similar signals, the MACD indicator shows a weakness in the uptrend as the fast and slow lines prepare a bearish crossover with a fall in bullish histograms.

Moreover, the Stochastic RSI indicator shows a falling trend of the K and D lines representing a bear cycle in motion, promoting the downtrend below $40. Hence, the technical indicators represent an increase in bearish trend momentum ready to drive below $40 and reach the next support level.

In short, the SOL technical analysis forecasts a bearish continuation below $40 to reach the next support at $20.

Upcoming Trend

If the selling pressure sustains below the crucial support level of $40, a downtrend to $20 is inevitable, resulting in a 50% fall. However, a lower price rejection at $30 can result in a retest rally to $40.

Resistance Levels: $50 and $60

Support Levels: $30 and $20