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The Solana price continues to display bearish movement on the daily chart. Over the last 24 hours, the altcoin dipped close to 4%. In the past week, SOL depreciated 12%. But at the moment, Solana is trading near a crucial resistance level below $22, and overturning this price mark could change the price direction of the altcoin.
Currently, the price structure of Solana has demonstrated bearish strength. Demand for the altcoin remained considerably low, with limited buying strength. As a result, accumulation also dipped. Demand for SOL could rise over successive trading sessions if bulls push the price above the overhead price ceiling.
The coin was also right above its crucial support level. Retesting that level might present traders with fresh buying opportunities. With Bitcoin consistently fluctuating on its chart in the past trading sessions, major altcoins present undecided price momentum.
If BTC manages to breach the $23,500 mark over the next trading sessions, Solana could attempt to break past its immediate resistance mark, strengthening bullish action in the market.
Solana Price Analysis: One-Day Chart
SOL was trading at $21 at the time of writing. The price of the altcoin stood at a very vital mark as it was inching closer to its overhead barrier of $22. A move above that level will turn the price around for Solana, as it could move close to the $28 mark, which would bring in close to a 20% gain.
On the other hand, SOL was also close to its support line of $20. If demand continues to decline, Sol might fail to remain above the aforementioned level and park itself on the $18 mark briefly. The amount of Solana traded in the last session declined, indicating that buying strength was low at press time.
Technical Analysis
SOL registered a recent downtick in buying strength over the past trading sessions, which has pushed buyers into a negative zone. The Relative Strength Index slipped a few points again and fell below the neutral zone. This indicated that sellers were taking charge of the price. SOL price was also parked below the 20-Simple Moving Average (SMA), an indication that sellers were driving the price momentum.
However, the price of the asset stood above an important juncture as a slight push from buyers would make the 50-SMA cross over the 20-SMA, which is a bullish signal for the coin.
In relation to falling buying strength, the altcoin also formed sell signals on the daily chart. The Moving Average Convergence Divergence indicates price momentum and reversals. The indicator displayed a red histogram, which is a signal to sell the asset.
The Chaikin Money Flow measures the capital inflows and outflows at a given point in time. The indicator noted a downtick and moved below the zero line, implying that capital outflows slightly exceeded inflows.
