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Solana price analysis: SOL recently noted 2022 lows, will it cause more bloodshed

source-logo  thecoinrepublic.com 05 June 2022 02:37, UTC
  • Solana coin again noted the 6-month low of $35.7 mark during the formation of a lower level.
  • During the downtrend, SOL’s market cap fell 4.4% to $12.7 billion over the past 24 hours.
  • Solana coin with bitcoin pair is trading down 2.8% at 0.001262 satoshis.

The Solana coin noted a 6-month low during a bottom-low formation. Short-sellers have been converting each growth into a selling opportunity for the past 4 months. Meanwhile, today’s lows are likely to lead a downside move towards the $20 mark, which will be the last hope for the bulls.

Thus at the time of writing, the Solana coin is trading at the $37.6 mark. Meanwhile, in the context of the 4-hours chart, sellers are forming a key hedge area near a falling trend line, hence the price action is reflecting a lower-high and lower-low pattern.

Source: SOL/USDT by Tradingview 

In addition to the short-term trendline, the SOL has been respecting the long-term downward trendline (White). Meanwhile, SOL’s market cap fell 4.4% to $12.7 billion in the past 24 hours during the downtrend.

The bulls may again witness a sell-off near the crucial $50 (weekly swing high) level. So, if they want to save themselves from more bloodshed, the bulls have to become stronger than the buyers.

In terms of the daily price chart, Solana’s price remained below key exponential moving averages such as 20 and 50. Meanwhile, the 20 EMA was a near-temporary selling zone.

However, increasing trading volume in SOL reflects sellers’ dominance. Moreover, Solana coin with bitcoin pair is trading down 2.8% at 0.001262 satoshis.

What is the bears’ next stop?

Source: SOL/USDT by Tradingview 

Stoch RSI is moving towards the oversold zone as both the moving lines reversed above the 85 mark with a double-top formation.

Conclusion 

As Solana Coin hit a 6-month low today, which is a clear sign of a strong sell-off. If the buyers want to save themselves from more bloodshed, the bulls have to become stronger than the buyers.

Support level – $35 and $30

Resistance level – $60 and $100

Disclaimer 

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

thecoinrepublic.com