Solana’s [SOL] falling wedge breakdown reignited its near-term bearish inclinations. Thus, the alt fell below the 20 EMA (red) and the 50 EMA (cyan) while forming a bearish setup in the 4-hour timeframe.
Alongside the 61.8 Fibonacci support, the two-month trendline support (white, dashed) cushioned the recent retracements.
Track live crypto price of 10000+ coins!
Any break below the current pattern can open doorways for a near-term decline before any realistic revival chances. At press time, SOL was trading at $32.8575.
SOL 4-hour Chart
SOL’s reversal from the $42-mark has pulled the alt below its near-term EMAs. The south-looking bearish crossover of the 20/50 EMA has further impaired the buying rallies.
Over the last two months, the trendline support (white, dashed) has assumed an important area of value. Since the bulls have flipped this line to immediate support after breaching it in the previous rising wedge recovery.
SOL’s recent movements have chalked out a bearish pennant on the chart. The price action seemed to consolidate while the 20 EMA posed stiff resistance.
A potential close below the pattern could aid the sellers to test the $31-$32 range in the coming sessions. A close below this level could hint at a further decline to retest the two-month trendline support.
However, the 61.8% support could aid buyers in preventing further drawdowns. A compelling close above the 61.8% level could extend the squeeze phase near the 20 EMA before a volatile move. Any bearish invalidations could see a bearish counter in the $34-$35 range.
The Relative Strength Index (RSI) failed to find a spot beyond the 45-mark resistance over the last few days. Given its sideways tendencies, buyers still have a long way to alter the broader outlook in their favor.
Interestingly, the Accumulation/Distribution line registered lower troughs over the last three days. So a rebound from its immediate trendline support could affirm a bullish divergence with price. This could help the buyers hold the 61.8% level on the chart.
Also, the traders should watch out for AOs close above the zero-line to determine a shift in market momentum before placing calls.
Given the bearish structure near its south-looking EMAs, SOL could continue its devaluation in the coming sessions. The triggers and take-profit levels would remain the same as above.
A potential accumulation on the A/D indicator and the 61.8% support could hamper the near-term selling efforts. Importantly, investors/traders must keep a close eye on Bitcoin’s [BTC] movement to determine its effects on the broader sentiment.
Download MAXBIT Android App, Your best source of all crypto news!
Share this article: