Solana (SOL) appears to be consolidating in the immediate vicinity of an important support area, according to an analyst’s opinion of a possible bullish formation following a decline in price. Following consolidation, there are early indications that there will be a rally should the support hold; however, the strength is weak.
At the time of writing, Solana is trading at $86.46, with a 24-hour trading volume of $4.80 billion and a market capitalization of $49.52 billion. Over the last 24 hours, SOL has gained 1.80%, indicating a pause in its recent decline as investors monitor the current range for confirmation of the next move.
Source: CoinMarketCap
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Solana Builds Base Under Resistance
In a recent post made by the crypto analyst BitGuru on X, it was indicated that it seems like Solana is emerging from its consolidation period into what could be called a recovery formation between the $84 and $86 levels. BitGuru also pointed out that this formation was being used as a base due to the rejection at the $90 level.
Source: BitGuru’s X Post
In the meantime, it is important to trade above this level. Should SOL continue to be stable within this range, the chance of moving above the $90 level becomes feasible. But it needs to be taken into consideration that technically, the pattern still looks vulnerable and may slow down the potential rebound process.
Solana Bearish Signals Weaken Momentum
The Relative Strength Index (RSI) of Solana stands at 35.41, which is below the neutral point of 50, suggesting a lack of strong buying pressure. The trend continues to be bearish with SOL below its moving averages, with the 20-day SMA at $101.26 and the 50-day SMA at $105.03.
However, the 100 SMA at $146.83 and the 200 SMA at $157.66 remain significantly higher, reinforcing the broader bearish trend.
Source: TradingView
The MACD Indicator is below the zero line with the current value being at -19.94, but showing signs of getting better. There is a potential for the crossover since the signal line is currently at -21.06.
Meanwhile, the bars on the histogram have shown signs of getting weaker as well. However, there still hasn’t been any sign of a reversal of the current trend.
Over the short term, Solana will be at a key turning point. With a breakout on the upside, Solana could head towards a price target of $90. A breakdown here would mean that a deeper pullback could be expected in advance of any reversal pattern formation.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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