SOLANA Price Analysis: SOL Price Approaches $0.80; Is $65.0 Possible?

By Rekha chauhan
May 6, 2022 Updated May 6, 2022
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Solana

SOL price continues to drift lower following the long-term downward trend. The SOL buyers is out of the scene for more than a month. A further spike in the sell orders could trigger a downside momentum that could push it to a multi-month low.

  • SOL price extends the loss for the second straight day on Friday.
  • More downside could be expected if the price breaks below $75.0 on the daily chart.
  • The price fell 15% in two days amid sustained selling pressure.

SOL price continues south movement

Source: Trading View

On the daily chart, the SOL price depreciated nearly 69% from the record highs of $260 made in November. The price tested the swing lows of $80.0 in late January, since then the horizontal support zone is being tested four times. Thus, a strong downside barrier for the price to sustain. For the whole time, the critical 50-day ema (Exponential Moving Average) plays the role of a strong upside barrier.

Only after March 24, the SOL buyers could muster the strength to pierce the moving average and highs of $143.57 on April 2. However, this rise in price proved to be a selling opportunity for the investors.

Currently, the price hovers near the multi-month low, a break below the level would produce more downside opportunities. The immediate would be $66.0, the levels last in August.

On the contrary, a resurgence in the buying momentum could push the price back to the previous high of $95.18. Further, an acceptance above the 50-day ema would generate the buying momentum to test $120.

As of publication time, the SOL/USD trades at $81.56 down by 3.44% for the day.

Technical indicator:

RSI: The daily relative strength index hovers below the average line since April 19. The price traders in the oversold zone for quite a while still the reversion seems distant.

 

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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