Solana price analysis: SOL recovers at $42 amid high selling pressure

The Solana price analysis is predicting a bullish trend for today. An improvement in price has been observed since the start of today’s session as it reached up to $42.6 again. The price underwent correction during the second half yesterday to the extent that the entire trend turned bearish. However, the coin was on a route to recovery during the past week, but from yesterday, the bearish pressure engulfed the market, and today, despite the fact that the price has slightly increased, the bearish pressure still seems to be there.

SOL/USD 1-day price chart: Bulls struggle for lead by recovering price to $42

The 1-day price chart for Solana price analysis shows the bulls are striving to regain momentum, though selling pressure still exists; however, the price has recovered back to $42.66. The short-term trend line is in the upwards direction as the coin gained significant value during the past few days, and the price is now at a much better position compared to the earlier levels as the coin gained 11.37 percent value during the past week. The trading volume has decreased by more than 35 percent during the last 24 hours resulting in the market dominance of 1.36 percent for SOL. The moving average (MA) value is at $40.8, just above the SMA 50 curve.

SOL 1 day
SOL/USD 1-day price chart. Source: TradingView

The volatility is decreasing slowly for the cryptocurrency as the lower end of the Bollinger bands is converging towards the upper band. Whereas the upper band is maintaining its position at the $46 mark representing the strongest resistance, the lower band has reached the $34.9 mark, representing the strongest support for the price function. The mean average line of the Bollinger bands is still forming below the price level at the $40.4 mark. The indicator’s convergence might further slow down the price oscillations in the coming days.

The relative strength index (RSI) is hovering at index 55 in the upper half of the neutral zone, and the curve is almost horizontal, which hints at a lack of momentum from either side of the market.

Solana price analysis: Recent developments and further technical indications

The 4-hour price chart for Solana price analysis shows the price increased at the start of the trading session today as bulls came to rescue the price function after a correction that followed for 12 hours yesterday. However, the selling pressure has formed again, and bears are exerting pressure to devalue the coin. If the selling pressure further increases, then there are eminent chances for the trend to turn bearish again.

SOL 4 hour
SOL/USD 4-hours price chart. Source: TradingView

The volatility is mild, with the upper limit of the Bollinger bands at the $45 mark and the lower band at the $40.9 mark, making an average at the $43 mark above the current price level. But as can be seen in the 4-hour chart, the selling pressure is quite high at the current price level, and the RSI has also started to decline at index 51 after rising slightly. The indicator shows the selling activity in the market.

Out of a total of 26 technical indicators available to us, 11 support the bullish side, and only five technical indicators are in support of the bearish side, whereas 10 technical indicators are neutral and show no sign.

Solana price analysis conclusion

The given hourly and daily Solana price analysis shows bullish price action with many bearish indications, as the price oscillations are quite low; however, we expect the cryptocurrency to remain bullish for the next 24 hours. After today’s up move, it is expected that the price will come down again in the coming days from the current price level as a wavy price pattern is quite clear on the charts, and SOL may continue this cycle for some time.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Source: https://www.cryptopolitan.com/solana-price-analysis-2022-08-01/