Solana has been making great progress over the past seven days. At the moment, however, the bulls have lost strength: in the last 24 hours, the value of the coin has fallen by 9%. The current support level for SOL is $38. After the huge rally on July 13, the price of the asset recorded a monthly high. The technical view for Solana shows that the bears have gained the upper hand.
After the bitcoin price fell by 6% over the last day, the altcoins also showed the same effect on their charts. Solana’s purchasing power decreased significantly, which was reflected in a negative price development. After a relief rally, it is usually not uncommon for coins to pull back, ie fall.
If purchasing power increases again, Solana could break out of its current price level and target the price ceiling. If SOL manages to break through the $44 price level, visiting the $50 level does not seem too difficult. Purchasing power and overall market strength could help Solana regain price momentum. Today the global cryptocurrency market cap is $1.07 trillion with a negative change of 5.1% in the last 24 hours.
Solana price analysis: four-hour chart
SOL is trading at $41 at the time of writing. The bulls lost momentum when the price touched $46. The overhead resistance for Solana is $48. A rise above could help Solana reach or even surpass the $50 level.
A decline at the current price level will see SOL touch $38 and then the $30 support line. If buying power holds, SOL could trade around the same price range before attempting to continue higher. The increase in the amount of SOL traded indicates an increase in purchasing power, which could indicate a recovery on the four-time chart.
The altcoin’s buying power remained low, with sellers dominating price action on the chart. Accordingly, the Relative Strength Index reflected the same sentiment. The RSI was below the average line, indicating lower buying power.
Although the number of buyers decreased, the indicator recorded an upward trend, which can be considered bullish. The price of SOL was below the 20-SMA. This suggests that, in the short term, sellers are driving price momentum. However, Solana’s price trades above the 50-SMA and the 200-SMA. This indicates that the upward movement may continue.
SOL accepted the decline in purchasing power and showed a sell signal. The Awesome Oscillator shows price direction and momentum on trend reversals. The AO created red sell bars, a sell signal for the asset.
A parabolic SAR also shows price direction. The dotted lines above the candle mean that the price direction of this item was negative. For Solana to move higher, purchasing power must increase on the chart.
Text credit: Newsbtc
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