Key Takeaways:
- Solana reversed gains as the wider crypto market reversed gains from its Fed rate hike fueled rally.
- However, SOL leads the major cryptos in 24-hour gains.
NEW DELHI (CoinChapter.com) — Solana’s native token SOL prices dropped 16.67% between high ($36) and low ($30) levels on Thursday, with the crypto market’s Fed rate hike-fueled rally stumbling as trading began on Jun 15.
Bitcoin (BTC) and other altcoins rose during trading late on Wednesday, but the cryptos reversed their gains as trading began on Thursday.
SOL prices jumped more than 30% between Jun 15’s intraday low ($26.7) and high ($34.8) levels, before corrections pared gains and the altcoin closed the day with 17.5% gains. Despite Thursday’s drop, the Solana token led gains among major cryptocurrencies over the last 24 hours.
SOL’s relative strength index rebounded from oversold levels on Wednesday and is currently neutral, clocking at 35.43 on the daily charts. However, the RSI trendline is moving downward, indicating selling pressure for the SOL token is increasing.
Also Read: Could Solana (SOL) pull off a 65% rally despite another network halt?
To recap, RSI measures the magnitude of recent price changes to analyze overbought or oversold conditions. When the RSI goes below 30, the asset enters the oversold region. An oversold RSI indicates a bullish trend reversal is on the cards.
Given the current market sentiment, it seems likely SOL prices would continue trending downwards.
As such, SOL prices could fall to immediate support near $28.8, which recently supported Solana’s price action. A breach below immediate support might push SOL prices to support near $25.4, which has been supporting Solana price action since May 2021.
Finally, a marketwide sell-off could force SOL prices to fall to support near $22.2, a fall of nearly 27% from current price levels.
MACD Remains Bullish for SOL
Meanwhile, the momentum oscillator MACD continues to forecast a strengthening upward momentum for Solana.
Moreover, the MACD line and the MACD signal line painted a bullish crossover on Jun 14. A bullish crossover occurs when the MACD line (difference of 12-day and 26-day EMA) moves above the MACD signal line (9-day EMA of MACD).
Also Read: Is Solana (SOL) a buy after losing 50% in May? Technicals are conflicting.
Traders often consider the pattern a buy signal.
If SOL bulls manage to kickstart an uptrend, Solana prices would need to move above their 20-day exponential moving average (20-day EMA, red wave) resistance at $38. Once SOL prices conquer the 20-day EMA resistance, the altcoin’s prices might rise to target resistance near $44.3.
Finally, a sustained uptrend could cause SOL prices to jump more than 71% to challenge resistance from its 50-day EMA (purple wave) at $53.
At writing, SOL was trading at $30.8, down 11.21% on the day.
