Solana’s Price Correction and Bearish Trend
Solana’s price has recently corrected to a critical golden ratio support level at $20, which could potentially lead to a bearish break for SOL. The daily chart shows a death cross formation in the EMAs, confirming the bearish trajectory in the near to medium term.
Key Points:
- Solana’s price has descended from $32 to $20, currently engaging with substantial golden ratio support.
- A bullish rebound was seen at $20, but bearish rejection occurred at the 0.382 Fibonacci level around $21.70.
- The MACD histogram indicates potential for a bullish crossover, while the RSI remains in neutral territory.
Formation of Death Cross in 4H Chart
A death cross has emerged in both the 4-hour and daily charts, reinforcing the bearish trend in the short term. The MACD histogram is declining bearish, possibly leading to a bearish crossover of the MACD lines. The RSI provides no distinct signals at the moment.
Key Points:
- Bearish rejection occurred at the 50-4H-EMA resistance level near $21.70.
- Solana needs to surpass the 0.382 Fib resistance at $21.70 to aim for the golden ratio level at $23.30.
- The 50-4H EMA at $20.90 is a notable obstacle before reaching these levels.
Bearish MACD Cross Raises Concerns in Weekly Chart
Solana’s corrective movement continues unless it successfully breaches the bullish level of the golden ratio at $27.50, accompanied by the 50-week EMA resistance. A crucial Fibonacci support remains at $17 on the downside to preserve the bullish trend initiated earlier this year.
Key Points:
- The MACD histogram consistently shows a downward trend, potentially leading to a bearish cross of the MACD lines.
- The RSI in the neutral region doesn’t provide definitive signals at this point.
Potential Correction to Golden Ratio Support in BTC Pairing
In its pairing against BTC, Solana’s price has broken the 0.382 Fib support, indicating a potential retracement to the golden ratio support at 0.000695 BTC. Despite the bullish crossover of the MACD lines, the MACD histogram has declined for three weeks, and the RSI remains in neutral territory, suggesting a likely continuation of the downward movement against BTC.
Hot Take:
While Solana’s price correction to the golden ratio support at $20 could lead to a bearish break, the overall trend remains uncertain. The bearish signals from the death cross and MACD histogram raise concerns, but the potential for bullish rebounds and the neutral RSI provide some hope for a turnaround. Keep a close eye on the key levels and indicators to make informed decisions.
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