1 Solana price has witnessed a sharp rise since the middle of June. 2 Solana price trades at $25.36 while observing a loss of -0.12% during the intraday session. 3 Sol price trades above the 20,50,100 and 200-day EMAs. During the start of June, Sol price faced rejection from $22 ...
- 1 Solana price has witnessed a sharp rise since the middle of June.
- 2 Solana price trades at $25.36 while observing a loss of -0.12% during the intraday session.
- 3 Sol price trades above the 20,50,100 and 200-day EMAs.
During the start of June, Sol price faced rejection from $22 and melted down to form support at $14.30 which was due to several factors. One of the major reasons for the downfall was the lawsuit filed by the Securities and Exchange Commission (SEC) against a major cryptocurrency exchange.
The cryptocurrency’s price has been in a bullish trend since the middle of June, rising from the support level of $14.30. Solana price witnessed a rise of roughly 124.44% from the support level and created an annual high at $32.13.
However, the price could not close above $30 due to the presence of bears which pushed the price towards $28. After the bullish move, the price entered into a correction and is currently headed in a downward direction.
The price formed a support at $25.50 which was shattered by the previous candle and the price closed below it. The previous candle had closed with a long wick to the upside, indicating high involvement of bears in the market. The current candle is bearish and if it can break the low of the previous candle, there is a possibility that the price might decline toward $21.90, which would result in a downfall of roughly 12.64%.
Solana Network Anatomy
The daily active addresses have declined by 7.8% to 266,883 in the last three months. On June 26, DAA reached 355.7K after which there has been a decline below 300k. The number of daily transactions has also seen a drop of 17.8%, reaching down to 19,232,778 in the last three months.
Total value locked (TVL) has surged 16.6% in the past three months, amounting to $318.3 million. The 24-hour trading volume has increased by 7.23% but the market capitalization saw a decrease of 5.66%. Solana has become the second largest cryptocurrency in terms of the daily transactions metric. The transactions per second (TPS) has also soared, reaching 3,777 TPS since january.
Will SOL Price Melt Down To $21?
Chaikin money flow score is -0.06, indicating slight weakness in the market. The cryptocurrency’s price trades above the 20,50,100 and the 200-day EMA, which indicates bullish momentum in the price and if the price melts down, there is a possibility that the 20-day EMA will act as a support.
RSI has escaped the overbought zone and currently trades at 63.87, suggesting that the price is still in bullish momentum. The long/short ratio is 0.96 with 49.19% longs and 50.81% shorts, indicating a slightly higher pressure from bears in the last 24 hours.
Conclusion
The market structure and price action has turned bearish after facing rejection above $32. Technical parameters indicate that price still possesses bullish momentum and can reverse if it can form a strong support.
Technical levels
Major support: $21 and $19
Major resistance: $27.70 and $32
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.