After failing to break previous highs this year, Solana’s price continues to decline. From a high of $118.88, the coin, which currently ranks 5th in the cryptocurrency space with a total supply of 440,961,455 SOL and a market capitalization of $58.2 million, is down over 25% and shows no signs of stopping.
At the time of writing, the price of SOL is up 2.76% and trading at $102.63, below its 100-day moving average over the last 24 hours. Meanwhile, on the daily time frame, the price drops a bearish candlestick, indicating that the price is still bearish.
Moving average indicators are commonly used to determine the trend (uptrend or downtrend) of an asset. Solana’s price is trading below its 100-day moving average. Does this mean the price has changed from an uptrend to a downtrend?
Solana on 4-hour chart
Technical examination of the 4-hourly chart and using the trend lines shows that the previous price movement created two resistance levels: $118.88 and $114.87. We can also see that the price has broken the support level of $103.57. So, the next destination for the price could be the $92.84 support level.
This can be seen in the image below.
Source: Tradingview.com
Additionally, if we look at the 4-hourly chart using the MACD indicator in the image above, we can see that the MACD histogram is trending below the MACD 0 line. Both the MACD line and the signal line are crossed and trending below the MACD 0 line, suggesting that SOL price is trending lower and may continue to fall.
Take a final look at the chart with the help of Bull Power Vs. The Bear Power Histogram indicator shows that the histogram is trending below the zero line. This means that buyers have completely lost momentum in the market and sellers have taken over. Therefore, prices tend to fall.
You can see this in the image below.
Source: Tradingview.com
Possible outcomes if SOL price continues to fall
If SOL continues to decline, we could see the price move towards the support level at $92.84. Additionally, a break below this level may cause the price to decline further towards the $79.32 support level.
According to data from CoinMarketCap, Solana is currently showing a slight increase of 1.3% in the last 24 hours.
SOL bulls struggle to maintain price at $102 | Source: SOLUSD on Tradingview.com
Featured image from Coininfomania, chart from Tradingview.com
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