Solana price gets capped as downward pressure mounts to a new monthly low
- Solana price action sees price getting squeezed further to the downside as tops lower.
- SOL price set to slip further, making new lows for the month, as upside sees firm rejection at a pivotal level.
- With the situation in Ukraine remaining unresolved, another refugee crisis is being formed together with global economic deterioration.
Solana (SOL) price action remains on the back foot as investors are struggling to see the upside potential with markets on edge of Ukraine and the additional inflation shock that is set to come from the imposed sanctions against Russia. Several red alerts are flashing in global markets, pointing to stagflation, which is the worst environment for cryptocurrencies to be in. Expect to see Solana price action remain under pressure with limited upside potential and broader downside movements towards $61.44.
SOL downtrend still dictating price action
Solana price action saw a firm rejection to the upside at $90.23, a historic pivotal level going back to August last year. With the rejection, SOL price action printed new lows for the week and is set to dip below the low level of February at $75.34. Coinciding with the monthly S1, that level should be able for bulls to make a fist, but as the downtrend is that massive, expect to see a break and continuation of price deteriorating towards $61.44, printing a new medium-term low.
SOL price action will by then see the Relative Strength Index (RSI) probably hitting the oversold barrier and should typically rebound a bit. But that argument can be canceled by overweighting the power of the 55-day SMA still in a death cross with the 200-day SMA and the short squeeze that is still reflected by the low highs and lower lows. Expect possibly to even see SOL RSI trade a fair bit in the oversold territory before finally seeing some depressurizing with price action have some leeway to move back to $90 levels again.
SOL/USD weekly chart
Over the weekend, cryptocurrencies are the only assets that are still tradable. Expect massive price jumps if further developments would or could point to a breakthrough in talks and projecting a peaceful solution in the near term. SOL price action would jump above $90.23 and target even $100.00 in the process with the monthly pivot and the 55-day SMA nearby as a double cap, testing the strength of the rally.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
