Solana (SOL) Struggling to $40 - Is A New Trend Starting Now?

The Solana price continues to move sideways: within the last 24 hours, SOL was able to gain about 6% and climb to $43 – so far, however, the altcoin has not managed to stay above the $40 mark on an ongoing basis. Also, SOL suffered a setback recently as thousands of wallets were emptied due to exploitation. The recent vulnerability allowed hackers to withdraw funds using private keys.

After the network attack, Solana’s value quickly dropped to $38. Solana’s price is now stuck just above the $40 mark.

Notice

The current support level for the coin is $43. If it does not stay at the above level, Solana could fall to $36. Bitcoin is also consolidating at the $23,000 level after the “king coin” fell slightly on its chart over the past two days. Altcoins were similarly affected.

In Solana’s case, the purchasing power of the coin fell due to the recent fiasco. Fortunately only a limited number of wallets were compromised, the Solana Network was not compromised. The global cryptocurrency market cap was $1.14 trillion today, down 0.4% in the past 24 hours.

Solana price analysis: four-hour chart

Solana is priced at $40.2 on the four-hour chart | Source: SOLUSD on TradingView

At the time of writing, SOL was trading at $40.2. The bottom has not yet recovered from the correction that occurred after it crossed the $46 level.

The recent loss of investor funds has certainly delayed Solana’s recovery. The base’s overhead resistance was $41. However, Solana’s price will be able to invalidate the bearish thesis once it manages to revisit its price and hold above the $46 price line.

On the downside, $36 enters the support level for Solana’s price. A drop of $36 takes the asset to $34. Solana’s trading volume in the last session has gone down a bit. This indicates a decrease in sales force.

If the price of Solana resumes its downtrend, the altcoin will soon trade below the ascending triangle, confirming a bearish tendency.

Technical Analysis

Solana showing an increase in purchasing power | Source: SOLUSD on TradingView

The altcoin saw a drop in buying pressure. However, in recent trading sessions, the coin has shown an increase in purchasing power.

The Relative Strength Index was crossing the midline, suggesting that buyers outnumbered sellers at the time of writing.

Solana price also traded above the 20 SMA line. This means that the buyers are driving the price momentum in the market.

This could mean bullish price action for the coin. If the buyers hold their position in the market, SOL could soon break its consolidation.

How does the price of SOL behave?

Solana is showing a buy signal on the four-hour chart | Source: SOLUSD on TradingView

SOL’s technical view showed that the chart was up. The Moving Average Convergence Divergence (MACD) signals price momentum and trend reversals. MACD histogram turned green after a bullish transition.

This value was interpreted as a buy signal for Solana. Bollinger Bands indicate price volatility and fluctuations in price. The bands were wide and parallel. This means: The price of Solana will not experience high volatility.

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Text credit: Newsbtc

Last updated on August 8, 2022