Solana is down 7% over the past 24 hours, breaking below the $35.50 price barrier. The bears have battered the cryptocurrency market, and altcoins overall have dropped onto their charts. Solana is also under bearish price action despite recording a slight uptick on the hourly chart.
Despite the gains, the bears will try to stop price action as the technical outlook paints a negative picture. Bitcoin continues to hold near the $20,000 mark while other market movers are struggling at the time of writing.
The altcoin is dangerously close to the $35 support line. However, the bulls continued to defend the next support line at $30. Purchasing power in the market is also still low, and as selling pressure builds, the SOL could fall again and trade around $30.
Global cryptocurrency market cap today is $941 billion, down by 2.6% within the last 24 hours.
Solana Price Analysis: Four-Hour Chart
SOL has been upbeat over the past week, with double-digit gains of 20%. SOL remains one of the altcoins that has recovered significantly this week. Despite the recovery, bulls are tired of pushing prices higher.
When the chart flashed a descending triangle associated with falling prices, SOL followed and fell on the chart. At the time of writing, Solana is trading at $35.65. The coin is likely to face strong resistance at the $38 price level.
A decline from current price levels would drag the price of SOL to $30 and then to $26. SOL volume fell in the previous trading day, indicating that buying has not yet fully recovered.
SOL flashed an increase in purchasing power, but it is possible that purchasing power may decline in the near-term trading session. The RSI is trending up above the half line, indicating that there are more buyers than sellers on the four-hour chart.
However, it is too early to conclude whether the coin will continue with this price momentum. The coin barely broke the 20-SMA line, which indicates that there is still selling pressure in the market. At press time, however, buyers are driving price momentum in the market.
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Moving Average Convergence Divergence describes price momentum and trend reversals. The indicator underwent a bearish crossover and formed a red histogram. The beginning of these histograms is a sell signal for the coin. This may be related to the upcoming price drop in SOL.
The average directional trend is responsible for recording the strength of the current trend. The ADX is approaching 20 in a downtrend, which shows that the trend is losing strength, which again shows that the market continues to be bearish.
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Featured image from UnSplash, chart from TradingView.com