Solana is down 8% on the chart, are you looking at $30?

Solana tumbled substantially in the last 24 hours and was inching towards its crucial support line. The technical outlook for the coin continued to reflect a downtrend. However, a few days ago, the coin had tried to bring the bulls back.

At the current time, SOL is trading back near the level of August 2021. The buyers also left the market as the bulls were defeated. The price of the coin has now found support at the $38 price mark. With the bears putting pressure and sellers dominating the market, Solana could again fail to sustain above the $38 price point.

Major resistance for the coin continues to await at $44 and if SOL regains bullish vigor then the coin could witness a continued rise during the immediate trading sessions. The global cryptocurrency market capitalization today was $1.29 trillion, with a 2.6% negative change in the last 24 hours.

Solana Price Analysis: One-Day Chart

Solana was priced at $39 on the one-day chart | Source: SOLUSD on TradingView

SOL was trading at $39 at press time, managed to hold above the $38 support level. With the bears back, Solana’s targets may drop below the immediate support line. The closest support line after the $38 mark was at $34.

With the coin forming a descending triangle signifying bearish, SOL could also target the $30 price support line. Considering that Bitcoin also pulled back slightly on the chart, market weakness could be one of the reasons Solana’s up move could stall.

The coin’s overall resistance stood at $44, above which the altcoin may find another resistance at $59. The volume of the currency traded in the last session had decreased and was red. This meant bearishness on the charts.

Technical analysis

Solana witnessed the drop in the number of buyers on the one-day chart | Source: SOLUSD on TradingView

The altcoin was oversold last week, as of that scenario, at press time the coin was above the oversold region. Despite being above the oversold region, the coin saw heavy selling pressure due to the recent drop.

The relative strength index noted a drop indicating a shortage of buyers in the market. SOL price was seen below the 20-SMA line, which meant that the sellers were fueling the price momentum in the market.

Continued selling momentum will only strengthen negative price action, however momentum with continued demand can send Solana above the 20-SMA line.

Related Reading | Short Position Piles Up, Could This Signal Bitcoin’s Next Move?

Solana showed a buy signal on the one-day chart | Source: SOLUSD on TradingView

Techs have painted a mixed signal with indicators leaning more bearish on the chart. Chaikin’s money flow, which indicates capital outflows and inflows, continued to be below the midline.

This meant that capital outflows exceeded inflows despite a rally in the CMF. Another bullish sign would be the flashing green signal bars of the Awesome Oscillator.

The indicator is concerned with depicting price momentum and a possible price reversal.

Green signal bars indicated a buy signal. If the buyers follow the signal, the bulls could see some relief on the chart.

Related Reading | Solana below $40 amid network outage, are the bears back?

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