By Nathan Ferguson
Solana saw a massive plunge to 61.8% following the latest price plummet beneath the 38.2% FIB support. Meanwhile, the 2-week trend-line support mitigated the recent declines in SOL’s 4-hour timeframe.
A bounce back from the Pitchfork median could open the gates for a short-term uptick before sellers re-join. While publishing this blog, Solana changed hands at $32.1975. The alternative token retains a bearish stance as the overall crypto space endures a downturn.
Solana 4Hr Timeframe
Solana plummeted beneath the 20 Exponential Moving Average and the 50 Exponential Moving Average following reversals from $42. The decisive bearish cross by these MAs also halted buying comeback possibilities in the short term.
The closest trend-line support might bolster buyers in avoiding escalated downtrends. A significant closing beyond the 61.8% mark might see bulls gaining strength to push towards $34 – $35. On the other side, closing under $31 might amplify the ongoing selling spree to $30 before possible pullbacks.
The RSI (Relative Strength Index) could not secure a space past the 40 resistance within the past few days. Buyers have multiple challenges shifting the overall market sentiment in their favor as this indicator maintains southbound tendencies.
However, the OBV formed lower troughs within the past day, presenting bullish divergence possibilities. Moreover, investors should consider a massive cross on the Moving Average Convergence Divergence to understand comeback potentials in the short term.
Solana Daily Timeframe
Solana witnessed an upward channel breakdown in the somewhat stretched periods. This drop saw the altcoin falling beneath the Bollinger Bands’ basis line and confirmed a steady bearish stance. A compelling closing beneath 61.8% might catalyze plunges towards $28 – $31 in the up-and-coming days. Buyers’ failure to test $34 would catalyze the prevailing bearish tendencies.
Final Thought
Considering the confluence of $31 support, Solana might propel the upside to $34 – $35 in the short term. Nevertheless, long-term analysis sees bears targeting $30 unless buyers ensure increased buying strength. The price targets would stay as highlighted above. Last, watching BTC remains crucial to ensure informed moves.
What are your thoughts about the prevailing market conditions? Feel free to share a reply in the comment space below.