SOL Bulls’ Effort Extinguish as Bears Pull Prices Down by 0.58%

Solana (SOL) prices have retraced $0.47 to $12.94 as the bullish impetus in the market wanes. In recent hours, trade activity has increased amid a downturn, indicating that selling pressure has outweighed purchasing demand.

While market capitalization dropped by 0.34% to $4,747,673,280, 24-hour trading volume surged by 8.62% to $182,896,344.

SOL/USD 24-hour price chart (source: CoinMarketCap)

On the 2-hour price chart, the Bollinger Bands are moving south, with the upper band touching $13.42 and the lower band at $12.78. This movement indicates that the bears are in charge of the market. Price is moving closer to the lower Bollinger Band, backing the notion that bear dominance may continue if bulls do not intervene.

The current SOL market bear rally is exacerbated by the downward trend of the Bull Bear Power (BBP). Because the SOL BBP indicates that bears have surpassed bulls in the current market (at -0.40), investors should expect the bearish tide to prevail.

When the Aroon-Up falls below the Aroon-Down, a new downtrend begins. Hence, the SOL price chart shows that the current bear run has not peaked since the orange Aroon up (57.14%) passes below the blue Aroon down (92.86%).

SOL/USD 2-hour price chart (source: TradingView)

Bearish momentum is signaled in the SOL market when the 50-day MA crosses below the 200-day MA. The 50-day MA reading of 13.48 and the 200-day MA reading of 13.65 on the 2-hour price chart reflect this. However, the formation of a bullish engulfing candlestick indicates that this bear trend may be invalidated in the near term.

SOL/USD 2-hour price chart (source: TradingView)

If the SOL bulls can hold the resistance level despite many indicators pointing to another bear run, the market will be in excellent shape.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk, Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

Source