Is Solana Struggling to Maintain Value?
Solana (SOL) recently broke out of an ascending channel in a downtrend, causing its value to drop by 13%. The altcoin’s price is now approaching its 20-day EMA, which could lead to further declines as selling pressure intensifies.
Solana Bears Are Taking Control 🐻
– Within the last three days, SOL has experienced a significant decline, pushing it towards its 20-day EMA.
– Crossing below this average indicates increased selling pressure and potential sell-offs.
– The 20-day EMA is a short-term moving average reflecting the asset’s average closing price over the past 20 days.
– Falling below this average is considered bearish, signaling a shift towards coin distribution.
– The decline in SOL’s Money Flow Index (MFI) confirms the rise in bearish influence.
– MFI is an indicator of buying and selling pressure impacting SOL’s price movement.
SOL Price Prediction: Long Traders Holding Strong 💪
– The recent price drop has led to significant long liquidations in SOL’s derivatives market, totaling $19 million between May 20 and 23.
– Long liquidations occur when asset value declines, forcing position holders expecting a rally to exit their positions.
– Despite this, futures traders are maintaining positive demand for long positions with a funding rate of 0.014%.
– If bullish momentum returns, SOL’s price could rally to $169.94.
– However, in the face of continued selling pressure, SOL’s price may drop to $151.95 as the next significant level.
Hot Take: What’s Next for Solana?
Stay tuned for updates on Solana’s price as it navigates through challenges and opportunities in the market. Will the bears continue to influence SOL’s value, or will the bulls reclaim control for a potential price rally?
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