Solana has recovered significantly from the lows it hit in November and December. Currently, the price of solana is stuck below US$26, which is causing the altcoin to lose value further.
Over the past 24 hours, Solana is down around 0.7 percent, which shows that the coin is tied to its charts. In the past week, this altcoin hasn’t moved much either. The technical outlook also shows improvement bearish for Solana.
The demand for altcoins is also decreasing as the accumulation has decreased chart-wise over the last few days.
A continued decline in demand will build momentum bearish to gather strength and fall over the line support closest.
Since Bitcoins hitting the US$24,000 mark, gains are starting to fade for the coin as it has been stuck below the price of the upper mark for over a week.
This drop in Bitcoin price caused other major altcoins to tumble on their respective charts. For Solana’s price to break through immediate resistance, broader market forces are required.
Currently, the SOL is trading 90 percent below its all-time high, which was hit in 2021.
Solana Price Analysis
Based on daily chart analysis, this altcoin is trading at US$24.70 at the time of writing. Over the last few days, the altcoin has been stuck under $26 reflecting lateral trading.
This price oscillation ranges between US$20 and US$26. SOL’s immediate price cap is US$26; if the coin doesn’t cross that mark, SOL could drop to US$22.
support the nearest altcoin is US$22, but a drop to that level would cause SOL to trade below the US$20 mark.
On the other hand, if the coin registers a large enough demand, it could cross Solana’s price cap of US$26 and target US$30. The number of SOL traded in the last session decreased, indicating a decrease in buying power.
If we look at the technical analysis, SOL has been overbought in the last few weeks, but the coin has retreated from the zone overvalued because demand is weak. Buyers continue to beat sellers.
The Relative Strength Index is above the 60 mark, but there is a slight drop in demand and that also shows that buying power remains on the chart.
Solana’s price is moving slightly above the line Simple Moving Averages (SMA) 20, which means buyers are in charge of price momentum.
However, the coin has almost fallen below its 20 SMA if demand continues to fall. This illustrates that SOL may fall on its charts in the upcoming trading sessions, quoted from Newsbtc.
Other technical indicators also show that demand from Solana is decreasing every day.
The Moving Average Convergence Divergence (MACD), which represents price momentum and a trend reversal, forms a red signal bar, meaning that it is a signal to sell, often followed by further solana price declines. [az]