Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation
The downtrend of Solana stays unbroken. The early February rally held a lot promise- and it did seem like SOL had flipped the $93 degree to assist earlier than its subsequent transfer upward. Nevertheless, the Russian invasion of Ukraine and the uncertainty and worry out there hastened an additional plunge within the worth of Solana’s token. The long-term outlook was bearish, though our latest report highlighted that sentiment could possibly be shifting.
SOL- 1D
Supply: SOL/USDT on TradingView
Solana has been on a downtrend since mid-November when the worth was merely unable to push above $240. Furthermore, it ceded the $188 degree to the bears. Up to now couple of months, the worth has examined the $81.13 degree on a number of days- however has not sunk decisively beneath the $80 mark but.
These exams of assist have additionally been alongside a sequence of weak bounces from the $81 level- the primary bounce reached $120, the subsequent petered out at $100, and the third at $88. This was worrisome for long-term bulls, because it indicated additional draw back was imminent.
The primary signal of a shift in bias could be a push above $106 for SOL, adopted by the next low being registered on the each day chart.
Rationale
Supply: SOL/USDT on TradingView
This flip in bias didn’t look seemingly, in accordance with the indications. The RSI has been beneath the 50 worth for months collectively, an indication of a gradual downtrend. The Aroon Indicator additionally confirmed lengthy stretches of draw back strikes, interspersed with intervals of retracement upward.
The OBV has seen regular promoting quantity since December. In latest weeks, a brand new low was not seen on the OBV, however this by itself didn’t point out the customer aspect strengthening.
Conclusion
Till the market construction is damaged, adopted by a sustained rise on the OBV, an uptrend cannot be stated to be in place. To the upside, $106 and the next low are a precedence. Decrease down the charts, the $70 and $58 ranges might provide assist ought to SOL see one other leg downward.
