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Solana Dips Below $20; Is $18 the Next Target?

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Charles Archer is an experienced financial writer specialising in monetary law. With a background in stock market and private equity analysis, he’s worked for many years as a freelance investment author, and has had articles published in a wide range of regional and national titles, both online and in print. He holds a Master’s degree in Law from the University of Law, the UK’s largest legal training institution. Charles believes the key to successful investing lies in quality research, and aims to offer a unique viewpoint that investors cannot find elsewhere.
By Charles Archer
author
Charles Archer is an experienced financial writer specialising in monetary law. With a background in stock market and private equity analysis, he’s worked for many years as a freelance investment author, and has had articles published in a wide range of regional and national titles, both online and in print. He holds a Master’s degree in Law from the University of Law, the UK’s largest legal training institution. Charles believes the key to successful investing lies in quality research, and aims to offer a unique viewpoint that investors cannot find elsewhere.
on September 27, 2023 | 2 min
Updated on Oct 01, 2023
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  • Solana shows a strong bearish trend, notably after dropping below the key $19 support; next targets include $18.50 and potentially $18.
  • Key indicators, such as the RSI and MACD, lean bearish, while the 50-day EMA provides resistance around $19.45.
  • A break above the $19 resistance could see Solana aiming for $19.75 and possibly further to $20.50, with the $19 level acting as a pivotal point.

In recent market movements, Solana (SOL) has experienced a noticeable decline, breaching the $20 threshold. This downturn has left investors and traders questioning the token’s short-term trajectory. With the market’s volatile nature, many are speculating whether the $18 mark could be Solana’s next destination. In this analysis, we’ll delve into the factors influencing Solana’s current price dynamics and the potential scenarios that could unfold in the coming days.

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SOL/USD Price Chart
SOL/USD Price Chart – Source: Tradingview

Solana Price Prediction: Technical Outlook

Today’s Solana price stands at $18.97, accompanied by a 24-hour trading volume of $146,559,816. Over the past 24 hours, Solana has witnessed a decline of 2.18%. As per CoinMarketCap, the coin is currently ranked #9 with a live market capitalization of $7,831,707,790 USD. The circulating supply for SOL coins is 412,876,676, while the maximum supply details remain undisclosed.

 

Examining the technical aspects of Solana, the cryptocurrency displays a pronounced bearish trend, especially following its descent below the crucial $19 support level. Presently, it is forming candlesticks just beneath the $19 mark, which has transitioned to act as a resistance. Consequently, the coin appears poised to target the $18.50 threshold. Persistent bearish momentum could further drive the SOL price towards the $18 level. Should Solana break below the $18 mark, its trajectory might be directed towards the subsequent support around $17.65.

 

Leading technical indicators, including the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), are firmly entrenched in bearish territories. For instance, the RSI hovers around 32, while the MACD showcases robust bearish histograms, presently valued at approximately 0.05. Additionally, the 50-day Exponential Moving Average (EMA) underscores the bearish trend and is presenting an immediate resistance near the $19.45 mark, potentially adding to the bearish pressure.

 

However, if the coin witnesses a turnaround and surpasses the $19 resistance, it might aim for $19.75 — a level reminiscent of a double top pattern evident on the 4-hour chart. Given heightened demand, should SOL breach the $19.75 level, a push towards the $20.50 level becomes plausible. In summary, the $19 mark stands as a pivotal point in the current scenario, and trading strategies predicated on positions below this might prove advantageous.         

Stay tuned for more updates!

author
About Charles Archer
Charles Archer is an experienced financial writer specialising in monetary law. With a background in stock market and private equity analysis, he’s worked for many years as a freelance investment author, and has had articles published in a wide range of regional and national titles, both online and in print. He holds a Master’s degree in Law from the University of Law, the UK’s largest legal training institution. Charles believes the key to successful investing lies in quality research, and aims to offer a unique viewpoint that investors cannot find elsewhere.
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