Amid broader swings in market sentiment, Solana price is sliding down a bearish slope, losing control of $150. With supply pressure mounting, the last six days are in the red, and downside risk is increasing.
Will Solana start a bear market recovery to reach his $500 target? This analysis deciphers the same thing!
Solana Price Efficiency
With a six-day bearish streak, Solana price has fallen by 13.76%. Currently, SOL token is trading at $138.64. Further, the bearish trend is breaking below the 200-day EMA, and the death cross is imminent with increased influence above the 50-day EMA.
Solana's bullish momentum has weakened as it has lost ground above the 150-day EMA, indicating a possible double top reversal. With peaks formed near $165, the neckline is at $135.
A breakout could push the cryptocurrency price towards the $128 support level, opening up buying opportunities. The bearish reversal erases last week’s 11.61% gain, forming a bearish engulfing candle on the weekly chart. Solana fell 19.35% in August and consolidated within the March mother candle, fluctuating between $125 and $209.
Technical indicators:
RSI: The daily RSI line shows a sideways continuation between the 30% oversold boundary and the midpoint with slight fluctuations above. With a potential drop to $128, the RSI line is expected to give a bullish divergence.
DMI: Rising ADX line after bullish crossover of VI lines increases Solana's chances of breakout.
Will SOL Price Reach $128?
As the streak of red candles continues on the daily chart, the overall sentiment for Solana remains extremely bearish. The next support levels after $128 are present at $115 and the psychological $100 mark.
On the other hand, the 50-day EMA around the psychological $150 mark and the $165 peak remain the most important resistances. Given that Solana price was able to surpass the $165 peak with a broader market recovery, the next challenge for Solana is to break the $182 resistance zone.
Read our Solana (SOL) price forecast find out about its future price targets