The Solana price witnessed considerable volatility over the past trading couple of sessions due to the general market decline. The Solana network underwent an outage the last weekend and the price was quick to retrace on its chart. Over the last 24 hours, SOL has also depreciated by 3%.
Furthermore, the technical structure of the altcoin continued to depict bearishness on the daily chart. Demand for the altcoin slid into the negative zone as buyers continued to struggle. Accumulation also fell on the chart as a result.
Due to the lack of buying strength, the Solana price is unable to climb above its immediate price ceiling. If buyers exert a slight push, the altcoin can attempt to retest the overhead resistance mark. As Bitcoin slid south over the last 24 hours, the altcoins that were attempting to move upwards also noted a decline in their price momentum.
If the altcoin retests its immediate resistance, it would provide selling opportunities to traders once again. The market capitalization of Solana noted a fall, which indicated that sellers were dominating at the time of writing.
Solana Price Analysis: One-Day Chart
Solana was trading at $21.90 at the time of writing. The coin was trading very close to its local price floor of $21.40. Over the last week, SOL remained sandwiched between the $21.80 and $23.40. Between these two levels, the stiff barrier for Solana stood at $22.80.
Moving above the aforementioned resistance level can push SOL to breach the $23.40 mark. This would invalidate the bearish thesis in the market.
On the other hand, a fall from the current price mark will take SOL to $20. If Solana touches the $20 mark, recovery could be slow for SOL. The amount of Solana traded in the last session was red, indicating a fall in buying pressure.
Buyers’ confidence in the asset has wavered significantly since the beginning of this year. The latest outage fiasco could be blamed for that. The Relative Strength Index slipped below the neutral line depicting bearishness. It also indicated that sellers outnumbered buyers.
SOL fell below the 20-Simple Moving Average (SMA) line as sellers were driving the price momentum in the market. There is, however, a catch here as SOL formed a golden cross as the 50-SMA (yellow) moved above 20-SMA (red) line. A golden cross indicated upcoming bullishness.
In conformity with low buying strength, SOL displayed sell signals on the daily chart. The Moving Average Convergence Divergence indicates price momentum and the indicator formed red signal bars. These red histograms reflect sell signals for the asset.
Parabolic SAR also suggested a downtrend, as the dotted lines were above the candlesticks. In the event that SOL was to invalidate these bearish signals, the coin has to move above the $22.80 mark.
Featured Image From UnSplash, Charts From TradingView.com