Solana (SOL) Analysis: Bearish Trend Emerges as Support is Tested
Solana (SOL) has been trading near the lower line of its ascending channel, which has been acting as support throughout the month. The altcoin’s value has seen a 7% decline over the past week, currently priced at $167.
Solana’s Attempt to Break Support
– SOL began moving in an ascending channel since its uptrend on April 30, starting at $129 and reaching a peak of $184 on May 20.
– A downtrend followed the peak as selling pressure increased.
– The coin is now at risk of dropping below its 20-day Exponential Moving Average, indicating a potential trend reversal from bullish to bearish.
– The break below this key moving average suggests a shift in market sentiment with sellers taking the upper hand over buyers.
Continue reading for a detailed analysis.
SOL Price Prediction: Defending Support Levels
– Open interest in SOL’s futures market has decreased by 4% since May 20, signaling a decreasing number of open trading positions.
– A breach of support at $163 may lead to a further decline to $157.99.
– Despite the decline, positive funding rates indicate ongoing long positions on SOL futures across exchanges.
– This could potentially create buying pressure and push the price towards $172.41.
Explore more about buying Solana (SOL) and comprehensive information on the asset.
Hot Take: Stay Alert as SOL Faces Bearish Pressure
As Solana (SOL) tests crucial support levels and faces a potential bearish trend, traders need to monitor the market closely for any signs of further downside. The shift in sentiment from bullish to bearish indicates a challenging period ahead for SOL and may require strategic positioning to navigate the current market conditions effectively.
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