Solana as a blockchain is relatively young after its raw debut in April 2020. Since its launch, the token has performed well, moving to $250 during the peak crypto cycle in October 2022. The short-term rise without fundamental developments in its transaction process and the ability to overcome the shortcomings in its smart contact ecosystem creates some issues. But the blowing impact was created after the development of an overall negative sentiment for the cryptocurrencies, also referred to as crypto winter.
Solana currently holds its market position as the ninth largest cryptocurrency, with a market capitalization of $11,427,328,826. Current prices are similar to what we witnessed during the June 2021 consolidation phase.
Solana witnesses consolidation near its immediate support of $27. Price having reached $30 creates havoc for buyers, but renewed buying sentiment has momentarily brought SOL out of the extreme negative outlook. Consolidation could create a positive sentiment for a longer duration. But will there be a positive turnaround for SOL? Read our Solana coin price prediction to know!
The price action of Solana showcases a declining sentiment that is affecting the market value with lesser transaction volumes. While the recent breakdown attempt to take SOL even below $30 has subsided, the positive sentiment may take time to develop. MACD has once again moved towards the negative quadrant, but a bullish crossover from this level can work better than previous breakout attempts.
Currently witnessed a decline from $47 to $32 is a result of breaching trendline support which is the first indication of an impending negative momentum. Other than that, the token itself is trading below its key short-term moving averages, which include the 50 EMA and 100 EMA. Hence, the immediate or short-term expectation from Solana should be consolidation and an indication of creating higher support than the previously tested $27.
Since the re-bound happened at $30, the chances of this level developing into the support that remains marginally short of the price movement seem dim. RSI indicator has confirmed the increased buying activity, which has helped the price take an upside movement compared to the current level of $32.61. In terms of resistance, all the moving averages below the $50 mark would create a hindrance to the positive movement of Solana.
Solana has confirmed the resistance at $47 for four weeks, and since getting rejected at this level, the declining weekly candles have finally received support in the form of the last weekly candle for August 2022.
The green candle is a replica of the price action seen during the first positive candle of June 2022. The difference between its immediate support and resistance remains significant. RSI and MACD indicators on weekly charts indicate an ongoing consolidative stance.