Solana Below $40 Amidst Network Outage, Are The Bears Back?
04 June 2022 - 11:00AM
NEWSBTC
Solana is on a downtrend currently, price of the altcoin has slid
below the vital support line of $40. This downslide comes in the
middle of a network outage, yet again! A software glitch was
responsible for causing an outage that lasted over 4 hours. Solana
had also experienced another major outage in the month of January
which stretched over 18 hours. This has apparently affected the
Solana ecosystem as constant outages causes traders to lose their
portfolio value simultaneously. Over the last 24 hours, the altcoin
lost about 6.4% of its value. In the last week, SOL depreciated
over 12%. After a period of consolidation, SOL attempted to rise
but the bears came back soon after. Right after the altcoin lost
its critical support of $50, it has been constantly value ever
since. Buying strength has also dropped owing to the recent
downtrend. Solana Price Analysis: One Day Chart SOL was trading at
$38 at the time of writing. It lost its crucial support of $40 and
was on a downtrend. If SOL does not manage to stay at its current
price level, it might aim for $34. The coin touched these price
levels last at the month of August 2021. The descending trendline
(yellow) agrees with downtrend in the market. For the bulls to
accumulate in order to invalidate the bearish thesis, the coin has
to attempt for $50. The volume of the coin traded had declined and
was in the red. This reading signified bearish dominance in the
market. Technical Analysis SOL had attempted to briefly recover on
the Relative Strength Index but at the time of writing the
indicator noted a downtick. The Relative Strength Index was
slightly above the oversold zone but pressure from the bears can
cause SOL to become oversold. As the sellers have taken over the
market, the coin has fallen below the 20-SMA line. A reading below
the 20-SMA line indicated that the sellers were driving the price
momentum in the market. A slight push from the bulls could however,
drag the price of SOL above the 20-SMA, which would then ease the
selling pressure in the market. Related Reading | Solana (SOL)
Could Register An Upswing, Thanks To This Pattern The Bollinger
Bands responsible for depicting price volatility indicated that
there was a squeeze release. A squeeze release essentially means
that price volatility could be expected. Price of Solana could sway
either way considering the above chart has painted mixed signals.
The Awesome Oscillator depicts the current price momentum and also
a change in the same. The indicator flashed green signal bars which
indicated a change in the momentum along with a buy signal. A buy
signal can be considered bullish if traders act on it. Going by
other indicators, it seems though SOL might be stuck in the same
price action over the immediate trading sessions. A change can be
expected if broader market extends support. Related Reading | Can
Bitcoin Bounce Back To $35K? Here’s What Stands In The Way
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