Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
Solanas [SOL] recent moves matched the terror as it ducked under the south-facing EMA ribbons. As the altcoin nullified bullish tendencies and broke out of its bearish wedge, the $28 mark support has provided immediate grounds.
A close above the six-week trendline resistance could offer near-term recovery opportunities, provided the bulls continue to boost buying volumes. At the time of writing, SOL was trading at $32.3375, up 8.42% in the past 24 hours.
SOL Daily Chart
SOL’s decline from USD 85 gave way to a bear run that accounted for a 72.7% drop in 40 days (as of May 6.). Consequently, it rallied to hit its 11-month low on June 14.
As selling pressure mounted, the alt refrained from breaking out to the north of its months-long falling wedge (white).
The bounceback from the $28 support caused a bullish hammer in the daily time frame. This candlestick could give the bulls much needed hope to break above the USD 32-$34 resistance.
Should the current candle close green, purchasing power would reaffirm the potential effectiveness of this hammer. In addition to daily gains, SOL also registered a nearly 51% spike in 24-hour volumes.
A convincing close above the six-week trendline resistance (yellow) could put the alt in position to test the Point of Control (POC, red) in the $39 zone.
As the broader market favored sellers, the EMA’s southward trend would likely halt buying efforts in the near term.
The RSI was in a slight uptrend at the time of writing, but it hit the 39 ceiling as the sellers still claimed a lead. Also, the higher highs of the OBV have seen a bearish divergence with the price over the past four days. This lecture entailed a possible short-term delay in the coming sessions.
Furthermore, the DMI lines visibly showed a bearish edge. Until the gap between these lines registers significant improvements, investors/traders may avoid placing calls.
SOL’s recent bullish hammer alongside the increase in buying volumes may fuel a near-term recovery. But for that, bulls need to knock over the $32-$34 range.
While the indicators suggested a bearish edge, SOL could likely continue its trend south in the coming days. Finally, it would be vital to keep an eye on Bitcoin’s movement when making informed calls.
This post Solana [SOL] could see a longer decline unless the bulls…
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