At the time of writing, Solana was priced at $21.57. Its overhead resistance level was identified at $23.30, which also serves as crucial as it has previously acted as a sell zone for the coin.
If SOL manages to surpass this resistance level, it could potentially reach $26. This will result in a price appreciation of almost 22%. Conversely, a decline from the current price level would push Solana down to $20 and eventually $18.
The trading volume of Solana in the last session decreased, indicating a drop in demand for the altcoin at the time of writing. It is important to note that breaching the $23.30 resistance level would require a resurgence of demand for SOL.
Technical Analysis
Solana noted low buying strength on the one-day chart | Source: SOLUSD on TradingView
Over the past week, demand for the altcoin has remained low, causing buyers to lose confidence, especially after its fall from the $23 level. At the time of writing, the Relative Strength Index indicated that selling strength had surpassed buying strength, as it was below the 50 mark.
Additionally, SOL dropped below the 20-SMA line, signaling that sellers had taken control of the market. However, there is still a possibility for a bullish market if buyers make a slight push, allowing Solana to rise above the 50-SMA line. This move could attract more buyers and revive confidence in the altcoin.
Solana displayed sell signals on the one-day chart | Source: SOLUSD on TradingView
On the one-day chart, SOL showed sell signals that are consistent with other technical indicators. The Moving Average Convergence Divergence, which reflects price momentum, has formed red histograms that indicate sell signals for the altcoin. This signals a bearish price trend.
Furthermore, the Directional Movement Index (DMI) is negative, with the -DI line (orange) positioned above the +DI line (blue). Additionally, the Average Directional Index (red) has fallen below 20, indicating a weakening direction in the current price.
Featured Image From UnSplash, Charts From TradingView.com
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Author: anushsamal
