Solana price gains positive momentum but not enough to sustain the rally, a 9% drop could be underway
- Solana price is trading with a bullish bias in the 4-hour timeframe, but buyer momentum remains insufficient to sustain the rally.
- SOL could drop 9% to $17.75 if buying pressure reduces.
- A decisive flip of the 100-day EMA at $20.22 into support could invalidate the bearish narrative.
Solana price (SOL) is trading with a bullish bias on the smaller time frame, moving upwards as the price consolidates along an ascending trendline. However, despite the bullish move, overhead pressure from major Exponential Moving Averages (EMA) could dissuade the rally, causing the altcoin to drop in market value. Bulls must increase their presence in the market for the uptrend to sustain. However, given the uncertainty and sluggish sentiment shown by big cryptos like Bitcoin (BTC) and Ethereum (ETH), chances for significant uptrends remain bleak even for Solana.
Solana price at crossroads
Solana price isat crossroads, confronting the immediate hurdle presented by the 50-day EMA at $19.66 as bulls push to maintain the uptrend on the four-hour timeframe. It could head north or south depending on how it confronts this supplier congrestion level. However, buyer momentum seems to be insufficient to breach past this barrier, which means SOL could drop below the lower trendline soon.
If Solana price breaks below the lower trendline at $19.18, the altcoin could lose its market value further, potentially correcting towards the $17.75 support level last tested on March 12.
In the dire case, Solana price could break below this level, falling to the $16.98 support level, or in extreme cases, visit the $15.95 swing low. Such a move would constitute an 18.37% drop from current levels.
SOL/USDT 4-hour chart
On the flip side, if buying pressure increases, Solana price could breach past the immediate resistance due to the 50-day EMA at $19.66, and the token could record more gains for investors. However, to invalidate the current bearish case, the altcoin must achieve a decisive daily candlestick close above the 100-day EMA at $20.22.
Breaking above the abovementioned level could see Solana price escape above the $20.39 major support level and target high prices. In such a case, the ideal move would be to crack open the 200-day EMA at $20.94, clearing the path for more profits for investors.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
