The $37-$39 value area was crucial for Solana bulls to protect. Success by bulls in defending the demand territory could have triggered upside price movements for SOL. However, Bitcoin’s selling momentum served as a trigger, sending most alternative tokens lows.
SOL had been battling to break beyond $42.5. While publishing this blog, the alt seemed to head back towards the support barrier that launched the upward move towards $42. Solana traded at $32.47 at this publication.
Solana 1 Day Timeframe
Experts market vital levels near the price on the daily chart. June’s swing lows and high plus May’s low will likely be crucial in the coming weeks. A concealed bearish divergence emerged as the SOL price hit $42.5. That signaled a former downtrend continuation, and the recent days had Solana slumping.
The May swing low at $37.37 has served as resistance and support within the previous month. Market players expected bulls to try defending this territory, which acted as a support level on shorter timeframes.
However, Solana crashed through the mark, triggering an amplified bearish outlook. As Bitcoin also encountered selling momentum, it seemed SOL would resort to southward movements in the coming few days.
Solana 2Hr Timeframe
According to the 2hr chart, the SOL price cruised lower after dropping below the 38.2% retracement mark. The alt broke $37.37 and was yet to retest it as resistance.
The Relative Strength Index neared the oversold region, whereas the Stochastic Relative Strength Index remained within the oversold territory. Thus, a potential rebound to $37 might happen before subsequent price drops.
Furthermore, an absence of a rebound from $33.75 highlighted the possibility of more declines. The A/D line maintained downside trajectories, and the increased selling momentum might push SOL lower without rebounds.
Final Thought
The $32 mark represents an ideal profit-take for short positions. A rebound towards $37 might offer a lucrative entry. Meanwhile, short positions could utilize Supertrend indications to execute a stop loss. The hourly and daily charts confirmed the selling momentum behind SOL.
Stay tuned for upcoming developments in the crypto spectrum.
