- SOL price stabilizes around $19.50, implying possible sideways movement.
- Bearish trend may continue; next support levels at $18.50 and $18.00.
- CMF suggests buying pressure, but KST and RSI indicate a bearish trend.
The Solana (SOL) market opened the day positively, jumping to a 24-hour high of $20.82. This bullish domination, however, was short-lived as bulls failed to break through resistance and retraced to a low of $18.83, where support was established. The price stabilizes around $19.50, suggesting that sideways movement may continue.
If bearish forces prevail, the $18.83 support level may be broken, the next support levels may stand at $18.50 and $18.00. If positive momentum strengthens, the price may break over the $20.00 barrier level and test higher levels in the medium term.
During the slump, market capitalization, and 24-hour trading volume fell by 6.03% and 33.53%, respectively, to $7,487,868,989 and $721,956,785. This decline can be attributed to investors’ tendency to liquidate their investments during a market retreat as they anticipate further market declines.
SOL/USD 24-hour price chart (Source: CoinMarketCap)
Although bearish, the Chaikin Money Flow (CMF) movement in the positive range with a score of 0.11 implies that there may still be some buying pressure in the SOL market. However, moving closer to the “0” line indicates waning buying pressure, and a stronger negative trend may emerge if the CMF drops below 0.
With a value of 72.4516, the Know Sure Thing (KST) indicator has crossed below its signal line on the 4-hour price chart, indicating that the negative trend in SOL may continue in the short term. The KST crossing below its signal line is considered a bearish indication.
The Relative Strength Index (RSI) falls below its signal line reading of 46.32, adding to the bearish mood. This crossing indicates a possible increase in selling pressure and further downward momentum.
SOL/USD chart (source: TradingView)
The TRIX reading of 21.56 indicates that the SOL negative trend is losing pace and that a trend reversal is probable. But, because it is going southwards, the bullish reversal may not be instantaneous, so traders should place suitable stop-loss orders to control their risk if the trend continues downward before reversing.
The True Strength Index (TSI) is trending below its signal line reading of 0.9841, indicating a negative market momentum that may extend the downward trend. This movement suggests that the expected reversal may not materialize soon, and traders should be cautious when considering long positions.
SOL/USD chart (Source: TradingView)
SOL faces a bearish trend with possible buying pressure, but traders should be cautious as downward momentum may continue.
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