By Nathan Ferguson
Solana’s nearest ceiling at $43 – $46 has restricted buying efforts within the past two weeks. Reversals from this territory have intensified the short-term selling pressure. Therefore, the alternative token plunged beneath the 20-50-200 Exponential Moving Average while printing a descending channel on the 4hr chart.
Meanwhile, the token’s troughs secure a cushion from the week-long trend-line support. Any break beyond the present setup might clear the road for short-term upticks before a potential reversal. While publishing this post, SIL changed hands at $39.05.
Solana 4Hr Timeframe
Solana’s reversals from $46 have dragged the token toward the Bollinger Bands’ lower band. Furthermore, the southbound bearish cross by the 20-50 Exponential Moving Average has restricted the buying uptrends. Meanwhile, the trend-line support has ensured rejections of lower values within the past week. This diagonal foothold plus the $38 – $39 value area can trigger short-term comeback inclinations.
A possible break beyond the pattern might catalyze a ‘sluggish’ period before SOL retests $41 – $43 within the upcoming sessions. Extended recoveries in the coming days might further confirm an ascending triangle in place.
Nevertheless, a bearish cross with the 200 Exponential Moving Average might delay short-term recoveries. Also, the latest bearish engulfing candle has displayed a bearish favor. A closing beneath $38 would see the alt testing $35 before potential revivals.
Reasoning
The RSI (Relative Strength Index) could not secure a position beyond the equilibrium. Considering its bearish stances, buyers should trigger massive buying volumes to catalyze bouncebacks. Nevertheless, the A/D (Accumulation/Distribution) line recorded lower troughs within the past three days. Rebounds from the immediate trend-line support might confirm a bullish divergence with SOL price. However, Solana’s ADX flashed a weak directional bias for the alt.
Final Thought
Considering the bearish signals near SOL’s southbound Exponential Moving Averages, the altcoin remained at a tricky level. The $38 – $39 value area might play a crucial role in the asset’s short-term movements. Take-profit levels and triggers would stay as discussed above. Furthermore, enthusiasts should asses BTC’s tendencies for money-making moves. That would also help identify potential invalidations.
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