The price of Solana (SOL) is currently falling as it breaks below the moving average lines.
Solana price long term forecast: bearish
The altcoin hit a low of $22.61 and is currently trading above the 50-day line SMA. Solana is thus trading between the moving average lines. If the altcoin is to gain momentum, the moving average lines must be broken. The current slump has brought the market to its oversold point. The coin is showing a long candle tail in the lower period. This indicates strong buying at lower price levels. If the current support is maintained, the altcoin will resume its upward trend. Alternatively, Solana will regain positive momentum if the price rises above the 21-day line SMA. The altcoin will rise and reach the previous high of $26.
Solana price indicator analysis
With a Relative Strength Index value of 48 for the 14 period, Solana is in the downtrend zone. The cryptocurrency seems to be stuck between the moving average lines. Due to its position between the moving average lines, the altcoin might be forced to move in a range. Solana has reached the oversold area of the daily stochastic below level 20. It is unlikely that the selling pressure will increase.
Technical indicators
Key supply zones: $60, $80, $100
Key demand zones: $50, $30, $10
What is the next move for Solana?
The current negative trend has slowed above support at $22. After reaching oversold territory at a low of $24, the altcoin fell to a low of $22, but has continued to fall significantly since then. The cryptocurrency resumed its uptrend as bulls bought the dip. If the buyers manage to overcome the resistance at $24, Solana will resume its uptrend.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing in funds.
Source: https://coinidol.com/solana-recovers-22/