Solana is currently in a downtrend, with the altcoin price falling below the crucial support line of $40. This downside occurs in the middle of a network outage, however! A software glitch was responsible for the outage lasting more than 4 hours.
Solana also experienced another major fault in the month of January which lasted for more than 18 hours. This clearly affects the Solana ecosystem as the continuous outages cause traders to lose their portfolio value all at once.
Altcoins have lost around 6.4% of their value in the past 24 hours. In the past week, SOL depreciated over 12%. After a period of consolidation, SOL attempted to rise but the bears soon returned. Ever since the altcoin lost the crucial support of $50, its value has remained stable. The buying power has also fallen due to the recent decline.
Solana Price Analysis: One Day Chart
At the time of writing, SOL was trading at $38. It lost its crucial support at $40 and was on a decline. If SOL does not manage to stay at its current price level, it may target $34. The coin touched these price levels in the month of August 2021. The descending trend line (yellow) agrees with the downtrend in the market.
In order for the bulls to submit to invalidate the bearish thesis, the coin would have to attempt $50. The coin traded had declined in volume and was in the red. This reading indicates bearish dominance in the market.
technical analysis
SOL had briefly attempted to recover on the relative strength index, but at the time of writing, the indicator noted a downtick. The relative strength index was slightly above the oversold zone but bearish pressure could result in the SOL becoming oversold.
As sellers took over the market, the coin fell below the 20-SMA line. A reading below the 20-SMA line indicated that sellers were driving price momentum in the market. However, a slight push from the bulls could pull the SOL price above the 20-SMA, which would then ease the selling pressure in the market.
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The Bollinger Bands responsible for reflecting price volatility indicated that there was a squeeze release. A squeeze release essentially means that price volatility can be expected. Looking at the mixed signals in the above chart, Solana price could get affected either way.
Awesome Oscillator shows the current price momentum and changes in the same. The indicator has flagged indicating a change in momentum with a buy signal.
A buy signal can be considered bullish if traders act on it.
Going by other indicators, it looks like SOL may get caught in the same price action in immediate trading sessions. If the broader market offers support, a turnaround can be expected.
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