A strong plunge toward the 61.8 percent level was sparked by Solana’s [SOL] recent dip below its 38.2 percent Fibonacci support. The recent retracements in the four-hour period were cushioned by the two-week trendline support (white, dashed).
Before the sellers enter the picture, a bounce off Pitchfork’s median (red) may pave the way for a short-term increase. SOL’s price at the time of publication was $32.197.
The alt has fallen below its 20 EMA (red) and the 50 EMA as a result of SOL’s pullback from the $42-mark (cyan). The likelihood of a short-term purchasing rebound has also been weakened by these EMAs’ compelling bearish crossing.
Buyers could benefit from the immediate trendline support in stopping additional drawdowns. If there is a strong closing above the 61.8 percent mark, the buyers may gather momentum and challenge the $34-$35 zone.
A quick closing below the $31 mark, however, might intensify the present selling and push prices under the $30 area before a likely pullback.
In the most recent days, the Relative Strength Index (RSI) was unable to break through the resistance at the 40-point level. Buyers still have a long way to go to change the overall perspective in their favor because of its southward-looking inclinations.
However, the lower troughs in the On Balance Volume (OBV) during the previous day have raised the prospect of a positive divergence with price. Additionally, in order to assess the likelihood of a short-term return, traders and investors must look for a significant MACD crossing.
Over a somewhat longer period of time, SOL observed a breakdown from its up-channel (white). The strong bearish prognosis was confirmed by this collapse, which resulted in a slide below the basis line (green) of the Bollinger Bands (BB).
A persistent closing below the 61.8 percent mark might trigger a decline in the next days toward the $28–$31 region. If the buyers are unable to test the $34 region, the negative trends will continue.
SOL may soon attempt a test of the $34–$35 region given the convergence of support in the $31–zone. But if we look at the market over a longer period of time, the bears would want to push prices down near the $30 range. The aforementioned goals would continue to apply.
In order to assess how Bitcoin’s [BTC] movement will affect the general mood, investors and traders must pay close attention to it.
