The Solana price has shown a completely bearish price thesis on the one-day chart. In that same time period, the currency declined close to 9%. Value depreciation could continue as the technical outlook points in the same direction.

With the recent Solana Protocol Raydium hack of over $2 million, the price of the coin has taken a further hit. Over the past week, the coin has lost almost 10% of its value. As SOL fell from its long-standing support line of $13, the coin has been in a free fall. Demand for the altcoin has remained substantially low, with investor interest waning.

Investors should be cautious as SOL continues to show increased volatility in recent weeks. For the bulls to return to the market, there are two important price levels that Solana has to break. Trading volume on SOL decreased, which is noticeable in the case of bearish price action.

As volatility remains high, further momentum from sellers will push SOL below its immediate support line. SOL’s market cap depreciated, an indication that the coin is under bearish influence.

Solana Price Analysis – One Day Chart

Solana was priced at $12.26 on the one-day chart | Source: SOLUSD on TradingView

SOL was bidding at $12.26 at the time of this writing. Solana price broke out of its consolidation when it dipped below the $13 support line. For the bulls to come back, Solana has to turn the $13 price level into a support line again. Before doing that, the coin needs to break above the $12.50 price mark.

As the coin continues to see less demand, a further drop in value is seen on the chart. In that case, Solana will start bidding at $11 and then at $10.40. This will mean another 17% drop for the coin before it starts to notice a price reversal. The amount of Solana traded last session declined, and that was a sign of bearishness on that chart.

Technical analysis

Solana posted higher selling force on the one-day chart | Source: SOLUSD on TradingView

For the past few weeks, the altcoin was trying to capture buyers, but the price did not align with the bulls. The Relative Strength Index was below the 40 mark, close to the oversold and undervalued region.

Usually, after this phenomenon, the currency tries to reverse its value. Relative to buyers, the Solana price was below the 20 SMA line, representing sluggish demand for the altcoin. It meant that the bears were driving the price momentum in the market.

Solana showed a sell signal on the one-day chart | Source: SOLUSD on TradingView

In keeping with the description of volatility, technical indicators have sided with the idea of ​​explosive price action. Bollinger Bands, which indicate price fluctuation and volatility, have narrowed and contracted, indicating that the SOL was expecting a breakout.

The moving average convergence divergence represents momentum and price change. The indicator painted a red signal bar, which was linked to the Solana price sell signal.

This post Bulls could be back for Solana if he’s above this level

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