The SOL prices fail to exceed $45, conducting to a bearish current below the 50-day SMA. Will the correction wave break the crucial support of $35?
Key Technical Points:
The SOL prices dropped by 15% in the last 48 hours.
The reversal from $45 breaks below the crucial support level at $35.
The 24-hour trading volume of Solana is $1.25 billion, indicating a drop of 13.2%.
Past Performance of SOL
The SOL prices have broken the long-term impact of a resistance trendline in the symmetrical triangle, surpassed the 50-day SMA, and reached $45. But, following a sharp reverse, the market decreases by 20% below that 50-day SMA to reach the lower support limit at $35. The increased selling pressure predicts the market to fall below $35 to test the broken resistance trendline with the ultimate support level of $25. Source – Tradingview
SOL Technical Analysis
The SOL price has dropped by 15% in the last two days, negating the rise in the breakout rally and signaling the possibility of a downtrend continuation. Additionally, the sharp increases in trading volume are an element of the bearish continuation theory. The market price is breaking lower than the 50-day SMA, and the sentiments of bears are growing significantly. Additionally, the dramatic drop in the daily-RSI’s slope pushes it under the halfway line as well as that of the average for 14 days, which indicates an exponential increase in overall negative sentiment. The MACD and signals lines do not sustain above the halfway line, resulting in a bearish crossover, teasing the possibility of a continuation of the downtrend. In simple terms, the technical indicators support a bearish view and predict an eventual drop in price below $35. However, the SOL technical analysis recommends traders wait until the candle, on a daily basis, closes below $35.
A drop below $35 would lower the SOL price to the following level of support at $25, which is an increase of 25 percent. In contrast, a bullish reversal with lower price rejection would likely push the overhead resistance to $45. Resistance Levels: $40 and $45 Support Levels: $35 and $30