Bitcoin reached lows last seen in July 2021, and Solana (SOL) reached a demand zone last seen in August. Does this imply that a relief rally is on the horizon? That alleviation was already obvious on the charts in certain ways. Solana fell as low as $60.13 before rebounding to $73.59, a move of approximately 22.3% from the swing low. The bears appeared to be regaining control of the situation.
The price ranges from $66 to $71 and has historically been an area of demand. In August 2021, the price shifted from resistance to support in this region, rallying to $216 and $260 in September and November, respectively.
On the higher timeframes, the price has been in a slump since late November. Shorter periods have also been bearish since the $94.9 level of support gave way in late April.
The $80 price zone is a price zone that needs to be noted before the $216 level was established last September; the price also leveled off at this level. This could be a place of the active tug-of-war between buyers and sellers.
The market’s downfall with huge capitalization led to SOL falling through this price range. Notably, SOL was trading above the $74-$76 price range from late August 2021 to early May this year before a strong sell-off in recent days. Will Solana reverse its trend at this high time frame demand zone?
On the daily chart, the price is below EMA22, the decrease of SOL after crossing this line is 43.2%. Regarding the 21-period RSI, it has also been below its SMA21 since early April after the price dropped below $110. This shows that the bears currently have the upper hand and could take advantage of the overall market decline to push the price lower.
The indicators unanimously showed strong bearish momentum and heavy selling pressure, and the price action was also of a bearish nature. The bounce from the $65 area could push as high as $75. To the north, the $75 and $80 areas are likely to pose resistance to the bulls’ attempts at recovery.
Currently, the recovery momentum of Bitcoin (BTC) and the general market remains unclear as the price of this largest cryptocurrency is under selling pressure at the $31,000 price zone. Will Solana price be able to hold its ground in its current position to create motivation for the bulls or continue to go down in the red of the market?
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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