The Solana price slid more than 3% over the last 24 hours and landed in the red. The price of the asset has been consolidating over the past few weeks. SOL has been struggling to get past its immediate resistance mark, which is further fueling the coin’s downslide. In the last week, the altcoin depreciated by over 4%.
The bulls tired out the moment Solana attempted to breach the $14 price mark. The technical outlook suggests that sellers have taken over the price action in the market. After a brief bullish run up to the $13.98 mark, this could be the coin correcting again.
The coin, however, lacked any bullish reversal signs on its daily chart. The only way for SOL to register some gains would be if the altcoin overturned the $15 price ceiling as a support level. Solana has also been trading in a descending trendline, overruling the chance of a price reversal at the moment.
A breakout from the descending trendline looks difficult, as buying interest was bleak on the chart. Bears can only be invalidated if SOL moves above the $29 resistance line. The market capitalization of the asset had also declined at press time, indicating bearishness for the altcoin.
Solana Price Analysis: One-Day Chart
SOL was trading at $13.19 at the time of writing. Ever since SOL lost the $15 price floor, it has been a free-fall for the asset. Immediate resistance for SOL stood at $14 and then at $15. Breaching the $15 mark looks unlikely as long as the coin remains consolidated.
However, continued lateral price movement can push the Solana price to a fresh low on the chart. If the coin loses its $13 support, it will fall straight to $10. The inability to remain above the $10 price level can also drag the altcoin to $4, which means a 70% downfall for the altcoin. The amount of Solana traded in the last session was low, indicating bearish movement.
The altcoin recently visited the oversold zone in the last month. The recovery from that point has not been substantial, as for the most part of December, the altcoin was under the grasp of the sellers. The Relative Strength Index dipped below 40, confirming selling strength on the chart.
Similarly, the Solana price was below the 20-Simple Moving Average line, indicating low demand for the altcoin. It also meant that the sellers were driving the price momentum in the market.
Other technical indicators pointed at a buy signal for the coin, albeit one that is declining. The Moving Average Convergence Divergence demonstrates price trends and momentum. MACD depicted declining green signal bars, which were tied to the buy signal.
Buyers would not act on it given how the signals were declining in size. Bollinger bands that display volatility remained constricted, denoting a tight trading range for the coin and the possibility of a price breakout. With indicators siding with the bears, the breakout could likely be on the downside.