By Franklin Smith
- Solana has its price testing the last support before experiencing a capitulation.
- Bulls are nowhere to be seen and seem to avoid the marketplace.
- Upward possibilities remain, but buyers need to step up.
Solana (SOL) exhibits bearish conditions without any immediate support barrier. The alternative token breached beneath its 2022 Volume POC at $90 while eyeing new lows of the year. While writing this content, Solana traded at $77.56, dropping 2.88% within the last 24 hours.
Solana Buyers Diminish, Massive Drops Impending
Solana stayed inside an Ideal Bearish Ichimoku, showing enthusiasts that a persistent and extended sell-off might emerge with an enormous and abrupt crash. According to the Volume Profile standpoint, SOL traverses a downside move until hitting the following high volume node.
The following high-volume node does not showcase until the value area at $50. In the 2021 VP, the high node between $25 and $50 was the 2nd largest high node and the longest as far as time spent inside a range is concerned, approximately 120 days.
Remember, the longer SOL stays under the 2022 Volume Profile, $90, and daily Ichimoku increases the probability of the flash crash to explore the $50 mark. Nevertheless, SOL’s daily chart exhibits some bullishness.
There’s a bullish divergence between Solana price, %B oscillator, and the CI (Composite Index). Moreover, the Relative Strength Index stayed inside a bullish market situation and currently tests the last oversold region at 40, the level never touched since shifting into a bullish market.
For now, bulls need a closing at or beyond $120 to authorize Ideal Bullish Ichimoku and reveal a clear picture about continuing a new upswing.
Considering the overall market condition, Solana will likely resort to downswings. For now, bears dominate the marketplace and seems aggressive for extended declines. Also, SOL’s correlation with Bitcoin means it will depend on the king crypto for the coming sessions.
For now, Bitcoin bulls appear to surrender to bears. The world’s leading crypto stretches its leg down, changing hands near $34,446.17 at this publication, following a 3.84% loss in a day. Such actions support the downward case in Solana.
Stay tuned for upcoming developments in the crypto markets.