Amid the broader market mood swings, the Solana price slides down a bearish slope as it loses grip over $150. With increasing supply pressure, the last six days are painted red, and the downside risk increases.
Will Solana commence a recovery in a bearish market to achieve its target of $500? This analysis decodes the same!
Solana Price Performance
With a six-day bearish streak, the Solana price has dropped by 13.76%. Currently, the SOL token is trading at $138.64. Further, the bearish trend breaks below the 200-day EMA, and a death cross is imminent with the increased influence over the 50-day EMA.
Solana’s bullish momentum has weakened as it lost its holds over the 150-day EMA, indicating a possible double-top reversal. With the peaks formed near $165, the neckline stands at $135.
A breakdown could possibly push the crypto price to the $128 support level, thereby opening up buying opportunities. The bearish reversal nullifies last week’s 11.61% gain, forming a bearish engulfing candle on the weekly chart. In August, Solana dropped 19.35% and has been consolidating within March’s mother candle, fluctuating between $125 to $209.
Technical Indicators:
RSI: The daily RSI line shows a sideways continuation between the oversold boundary at 30% and halfway with minor fluctuations overhead. With the potential drop coming to $128, the RSI line is expected to give a bullish divergence.
DMI: The uptick in the ADX line following the bullish crossover of the VI lines bolsters Solana’s breakout chances.
Will The SOL Price Hit $128?
As the streak of red candles continues in the daily chart, the overall sentiment for Solana remains highly bearish. The next support levels following the $128 are present at $115 and the $100 psychological mark.
On the flip side, the 50-day EMA near the $150 psychological mark and the $165 peak remain crucial resistances. Considering that Solana’s price managed to surpass the $165 peak with a broader market recovery, the next challenge for Solana is to surpass the $182 resistance zone.
Read our Solana (SOL) Price Prediction to learn about its future price targets
Source: https://coinpedia.org/price-analysis/solana-bear-cycle-warns-8-fall-while-buyers-hope-for-a-47-double-bottom-reversal/