Thursday, April 18, 2024

Solana (SOL) Price Analysis: Potential Downturn Before Next Upswing.

The price of Solana (SOL), which trades below the $200 psychological mark, has reversed half of the gains seen during the previous week. There may be more corrections over the weekend or the next week as a result of this pessimistic view.

Solana Price requires a reprieve
The price of solana has increased by 1022% since September 2023. The two primary causes of this astounding surge are the recent run-up in Bitcoin and the oversale of SOL because of its association with the now-defunct cryptocurrency exchange FTX. Solana had a 39% increase last week, marking the largest weekly gain of 2024.

However, the Solana price has experienced severe rejection over the last five days near the $200 psychological threshold and is currently trading over 16% below the closing level of the previous week.

The following factors could potentially facilitate this correction:

Bitcoin’s bearish outlook: the weekly sell signal is causing BTC to surge higher. The pioneering cryptocurrency is probably going to drag altcoins down with it as profit-taking ensues.

Bearish divergence: There is a non-conformity known as bearish divergence, as the weekly SOL chart has produced a higher high and the Relative Strength Index (RSI) has generated a lower high. This configuration frequently denotes a slowdown in momentum that could result in a short-term pullback or possible reversal.

Potential sell signal for MRI: The Momentum Reversal Index (MRI), which appears on the eighth successive up candlestick, has flashed a yellow down arrow. This development suggests that SOL’s next up candlestick could flash a sell signal, indicating a one-to-four down candlestick pattern.

Given the market’s bullish state, a reversal is improbable given the bullish state of the market, indicating that SOL may be due for a drop. Furthermore, there was a dead cat bounce to $200 during the bear market that started in early November 2021, which is currently the price at which SOL is experiencing another sell-off. Thus, the weekly foothold at $152 and $134, the middle of the last bear market crash, are stable support levels where buyers would find the Solana price appealing.

Although a sweep of $134 would be ideal for accumulation, investors should be aware that this move has little chance of happening given the current exceedingly positive outlook.

On the other hand, there’s a good chance that the uptrend will continue if the Solana price prematurely flips over the $200 psychological barrier. But SOL might follow in its footsteps if the price of Bitcoin keeps falling.

A strong weekly candlestick close below $134 would indicate a possible trend change. This could encourage inexperienced investors to sell their shares. If the panic sell-off is strong enough to cause the price of Solana to close below $100 on a weekly basis, it would refute the bullish outlook. Solana’s price may plunge 11% in such a scenario and retest the $89 support level.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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