Solana price analysis: SOL bullish rally crashes around $46 resistance level

Solana price analysis is showing bearish signs once again, as the token crashed over 7 percent this morning. This came about after price touched a month-long high at $47.22 after a propelling upward trend that initiated on July 13, 2022. Since then, SOL price rose over 46 percent and looked to be heading up to the $50 mark. A breakout above the $46 level could have initiated a test of $50 resistance, but Solana seemingly faced a rejection around the current price at $47. If the downtrend extends, SOL could move down to $42 which could signal the end of the bullish run.

The larger cryptocurrency market showed mixed signals across the board over the past 24 hours, as Bitcoin consolidated past the $23,500 mark. Ethereum faced a minor correction around $1,500, whereas leading Altcoins also depicted minor downtrends. Cardano consolidated at $0.51, while Ripple moved down to $0.36 with a small decline. Dogecoin rose 2 percent to reach $0.07, whereas Polkadot dropped more than 3 percent to move down to $7.71.

Solana price analysis: Cryptocurrency heat map. Source: Coin360

Solana price analysis: Overbought RSI undergoes significant dip on daily chart

On the 24-hour candlestick chart for Solana price analysis, price can be seen forming an Evening Star pattern which indicates a sudden change in trend following an extend bullish run for SOL. After touching a month-long high at $47.11, price can now be seen falling as low as $41.11 and permanent settlement below support at $42 could signal the end of the bullish rally. SOL price still sits comfortably clear of the 9 and 21-day moving averages, along with the crucial 50-day exponential moving average (EMA) at $40.34 on the 24-hour chart.

Solana price analysis: 24-hour chart. Source: Trading View

However, the 24-hour relative strength index (RSI) shows worrying signs after depleting down to 58.32 in a matter of hours, shortly after touching overbought market valuation at 63.94. The RSI trend goes in line with the current price correction in place while a 27 percent dip in trading volume suggests that traders are waiting to see the extent of the decline in place. Meanwhile, the moving average convergence divergence (MACD) curve can be seen forming lower highs currently, but sits comfortably above the neutral zone. Over the next 24 hours, the bullish thesis can be invalidated if SOL price reaches below support at $42 where the second string support at $40 will come into place.

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