Solana bulls need to surpass resistance to prevent a 10% drop.
Currently, Solana’s (SOL) price is recovering from a corrective phase, but it needs to surpass a significant resistance level to sustain the momentum. Over the past week, SOL has had notable upward movement, gaining over 9%. However, the technical outlook for SOL still leans towards a bearish influence with low demand and accumulation for SOL, indicating a bearish sentiment.
Bitcoin’s volatility has affected the overall market, including altcoins, despite some major altcoins seeing price appreciation. The stability of the broader market is crucial for the future performance of SOL. The market capitalization of SOL has declined, indicating higher selling strength in the market.
Solana Price Analysis: One-Day Chart
At the time of writing, SOL was trading at $16.74 and has rebounded from the price level of $14.40, currently showing steady appreciation on its chart. However, SOL needs to surpass the immediate resistance level of $17.20 for the bullish momentum to strengthen. If buyers fail to drive the price higher, a retracement is possible, with the local support level at $15.21. If the coin is unable to sustain its position above this support level, it may decline further below $14.40.
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Technical Analysis
Despite recovering from the oversold territory, SOL’s buying strength remains relatively weak with sellers maintaining control over the price action, as indicated by the Relative Strength Index (RSI) being below the half-line. Additionally, SOL has fallen below the 20-Simple Moving Average (SMA) line, suggesting low demand and sellers driving the market momentum. To attract renewed demand, SOL needs to surpass the $17 price level.
On the one-day chart, SOL has displayed mixed signals, including the emergence of buy signals with the Moving Average Convergence Divergence (MACD) forming green histograms. However, the Chaikin Money Flow (CMF) has remained below the half-line, indicating relatively low capital inflows and a lack of significant buying pressure for SOL.
