- Solana (SOL) is hovering around the $68 level.
- Strong buyer interest is needed to improve sentiment.
The broader market sentiment has fallen into the extreme fear zone, with the Fear and Greed Index reading settled at 19. The majority of the digital assets are charted in red, likely pulling the price down. In the altcoin market, Solana (SOL) has posted a loss of 3.87% over the last 24 hours.
SOL kicked off the day trading on the upside at $71.59, and the sudden bearish attack has triggered the price to retrace to a bottom of $67.96. Currently, Solana traded at $68.31, with its daily trading volume reaching $2.37 billion. Also, the SOL market has seen a 24-hour liquidation of $16.31 million.
If the downside pressure intensifies, the bears could push the Solana price to its support range at $66.31. With a steady bearish correction, the death cross is expected to take place and gradually send the asset’s price even lower, below the $64.19 level.
Assuming a bullish reversal in the SOL market, the price would move up and test the immediate resistance at around $70.42. Upon a breakout above this zone with the golden cross emergence, the potential bulls might drive the price above the $72.53 mark.
What Is Solana’s Technical Chart Signalling Right Now?
The technical analysis shows that the Moving Average Convergence Divergence (MACD) and signal lines are beneath the zero line. Also, it displays that the Solana market is in a bearish trend. Technically, the momentum is negative, and the price is trading below its longer-term average.
As long as both indicators stay below zero, the broader trend generally favours the bears rather than the bulls.
Moreover, SOL’s Chaikin Money Flow (CMF) value at -0.25 infers a strong selling pressure and sustained capital outflows. This situation favours distribution, with sellers exerting clear control over the market. There are chances of continued downside, as selling outweighs buying.
Solana’s daily Relative Strength Index (RSI) is found at 38.35, indicating bearish momentum, but not yet in oversold territory. As it is below the neutral level, there will be continued weakness, with bearish pressure outweighing buying, with enough room before the market becomes oversold.
Furthermore, the Bull Bear Power (BBP) reading of SOL, positioned at -3.23, suggests a clear downtrend. The price is trading below its average, reflecting stronger selling activity, supporting the current downward bias. Notably, buyers need to step in aggressively to shift sentiment.
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