- Solana price action is testing its final support before a capitulation move begins.
- Bulls are absent and conspicuously avoidant.
- Upside potential remains, but conviction by buyers is needed.
Solana price action remains exceptionally bearish, with zero near-term support. SOL has broken down below its 2022 Volume Point of Control at $90 and is close to pushing new 2022 lows.
Solana price shows a total absence of buyers, major lows incoming
Solana price remains within an Ideal Bearish Ichimoku Breakout, signaling to traders that a long-term and persistent sell-off is likely to culminate with a massive and abrupt drop.
From a Volume Profile perspective, Solana price action is in price discovery mode until it hits the next high volume node. That next high-volume node doesn’t appear until the $50 value area. In the 2021 Volume Profile, the high volume node from $25 to $50 was the second largest high volume node but the longest from the time spent in that range – nearly 120 days.
The longer Solana price spends below the daily Ichimoku Cloud and the 2022 Volume Profile ($90), it is increasingly likely that a flash crash towards the $50 level will occur.
However, the daily Solana price chart isn’t without some bullish data. There is regular bullish divergence between price and the %B oscillator and price and the Composite Index. Additionally, the Relative Strength Index remains in bull market conditions and is currently testing the final oversold level at 40 for the first time since converting back into a bull market.
SOL/USDT Daily Ichimoku Chart
Bulls will need to close Solana price at or above $120 to confirm an Ideal Bullish Ichimoku breakout to give a clear signal that a new uptrend is about to continue.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.