By Franklin Smith
Solana’s southbound trajectory has had the altcoin inside the boundary of a 2-month downward channel. Moreover, the alternative token has battled to retain its position beyond the 20 Exponential Moving Average on the daily chart.
The latest reversal from the 38.2% FIB zone might catalyze short-term selling movements. Meanwhile, a rebound from the downward channel’s lower trend line might open gates for a near-term revival. Solana traded around $35.1425 during this publication.
Solana Daily Timeframe
Solana’s constant reversals from the downward channel’s upper trend-line have dragged the alternative token beneath its short-term Exponential Moving Average. Nevertheless, the southbound tendencies by the 20-50 Exponential Moving Average have halted buying rallies.
The 38.2% and 50% FIB resistances assumed a vital value zone within the past two months. Bulls have struggled to amplify their momentum, but escalated bearishness triggered new lows for SOL.
For now, the price action appears to consolidate around the POC (Point of Control). The inability of buyers to ensure a steady rally will only bolster sellers to extend the downside period.
Stretched devaluation might see bears testing $30 before possible rebounds. A bounce back from this mark might suggest retests of the Point of Control level around the $38 mark. However, a decisive closing beyond the setup remained crucial for bulls to catalyze breakout rallies in the upcoming days.
Reasons
The RSI (Relative Strength Index) could not secure a position above the midline resistance within the past few days. Considering the sideways moves, buyers have a long journey to transforming the bearishness plaguing the market.
Furthermore, the Chaikin Money Flow has tested the zero level for the past three weeks. A robust closing beneath this level would bolster sellers to extend the current bloodbath.
Surprisingly, the Awesome Oscillator eventually secured a position beyond its equilibrium. A sustained spot beyond this mark would suggest a gradual change in momentum in buyers” favor.
Final Thought
Considering the bearish structure around the southbound Exponential Moving Averages, Solana might witness setbacks as it maintains its patterned actions. The take-profit zones and triggers would stay as highlighted above. Nevertheless, enthusiasts should watch overall market sentiments for informed decisions.
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