Solana (SOL) Fails to Breach Consolidation for the Third Time!
Solana has lost significant value in the last thirty days, which indicates that negative sentiment has developed recently. Despite the negative trend, its position as the 9th largest cryptocurrency by market capitalization remains untouched. This observation further confirms the negative outlook to have impacted the entire cryptocurrency domain.
Its emphasis on revolutionizing decentralized finance is supported by a revolutionary validation system, a combination of Proof of History and Proof of Stake. Improved scalability will contribute toward positive growth and enable Solana to battle its competitors. Its all-time high of $260.06 reached on November 6, 2021, currently seems out of reach from Solana blockchain supporters considering the recent developments.
Solana returns to the lower band of its consolidation zone after the SOL token failed to breach $47.6 a third time. This time the resistance had additional reinforcement from the 100 EMA curve that resulted in an even stronger profit booking.
As the trend is getting repeated, we are witnessing hesitance on the buyer’s part to allow further decline of SOL tokens. Read our Solana price prediction to make a wiser investment decision in the crypto market.
100 EMA indicates the holistic performance of this asset over a three-month time interval. Unfortunately, the result indicated incapability to breach resistances. The next swing might bear fruitful results as the token is headed towards a support formation. The wicks developing in the last four days confirm minor support, whose strength is being tested.
If breached, SOL can retest the $25 support from June 2022. Solana will have to repeat a significant profit booking from the current trading value of $35.23 to create a larger negative trend. Another minor support could come into play at $32, further below the current levels.
RSI already indicates the sentiment to be very close to the oversold zones, which could trigger further profit booking. Some Solana buyers will see this as an opportunity to get tokens at a discounted value. MACD, on the other hand, projected a bearish crossover much sooner on August 17, 2022, as the SOL values breached its short-term positive trendline. The volumes remaining in the same zones as during the positive trend indicates the possibility of retesting the support levels before moving towards the resistance levels in the next swing.
SOL has performed poorly on the weekly scale, and the price projection is headed to engulf the entire positive momentum made during July 2022. Once this gain is engulfed by negative action, the Solana price outlook would turn extremely negative.
As such, MACD on weekly charts is also headed towards an intersection, which would confirm the downtrend stance and prolong the time required to emerge positive. RSI is trending barely above its oversold mark. SOL buyers should take advantage of the current setup to add more tokens to their portfolio or even make fresh entries into Solana. Still, those already in losses should wait for a bullish outlook to re-invest.
