Solana is a public blockchain network that provides an open infrastructure for the development of decentralized and highly scalable crypto apps. It is fast, tamper-proof, and censorship-resistant. It processes 50k transactions per second and is cost-effective. SOL is the native token of this ecosystem and the technical analysis is as follows:
On May 6, 2021, SOL opened at $44.97. As of May 12, 2021, SOL closed at $43.71. Thus, in the past week, the SOL price has decreased by roughly 3%. In the last 24 hours, SOL has traded between $40-$45.50.
Day-Ahead and Tomorrow
Currently, SOL is trading at $43.50. The price has increased slightly from the day’s opening price of $43.39. Thus, the market seems to be bullish.
The MACD and signal lines are negative. A bearish crossover by the MACD line over the signal line has occurred too. Thus, the overall market momentum is negative. Therefore, we can expect the price to start falling.
Currently, the RSI indicator is at 37%. It has just risen from the ‘oversold’ region. In other words, buying pressures are gradually mounting but as of now selling pressures are high. Thus, like the MACD oscillator, the RSI indicator is also pointing towards a price decline.
The A/D indicator is falling steadily. This implies that whale distribution is slowly surpassing whale accumulation. Thus, the A/D indicator is giving further credence to a price fall shown by the MACD and RSI indicators.
SOL Technical Analysis
Presently, the SOL price is above the Fibonacci pivot point of $43.07. It may soon fall below the pivot point and further below the first support level of $40.97 in some time. If the bears remain strong till day end, the price is likely to fall below the subsequent support levels of $39.67 and $37.57, respectively.
The price has tested and fallen below the 23.6% FIB retracement level of $44.20. If by day end, the price falls below the 138.2% FIB retracement level of $37.90, then the price downtrend is strong and expected to continue tomorrow as well.