SOL price continues to decline after a long-term downward trend. SOL buyers have been out of sight for over a month. The sell order could start a further downside movement that could push it to a multi-month low.
- SOL price extended losses for the second consecutive day on Friday.
- If the price breaks below $75.0 on the daily chart, more downsides can be expected.
- The price fell 15% in two days amid continued selling pressure.
SOL prices continue to move south
On the daily chart, SOL price declined nearly 69% from a record high of $260 created in November. The horizontal support area has been tested four times since the price tested the $80.0 low at the end of January. Thus, a strong downside barrier for the price to sustain. For the entire time frame, the crucial 50-day EMA (exponential moving average) is acting as a strong upside barrier.
It was only after March 24 that SOL buyers could gather strength to break the moving average on April 2 and the high of $143.57 on April 2. However, this increase in prices proved to be a selling opportunity for the investors.
Currently, with the price hovering near multi-month lows, a break below the level would create more downside opportunities. The immediate would be $66.0, which was the last level in August.
Conversely, a resurgence in buying momentum could push the price back to the previous high of $95.18. Besides, an acceptance above the 50-days EMA would generate buying momentum to test $120.
As of publication time, SOL/USD is trading at $81.56, down 3.44% for the day.
Technical Indicators:
RSI: The daily relative strength index has turned below the average line since April 19. Price traders in the oversold zone see a reversal still far away for quite some time.
The material presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication has no responsibility for your personal financial loss.