SOL Falls Under Bear’s Spell as Indicators Confirm Bearish Sentiment

Many major cryptocurrencies are facing double-digit falls over the week, including Solana. SOL, the native token of Solana, faced a tumble of 16.08% in just seven days. Moreover, SOL is currently trading at $20.99, after plummeting by 1.67% in 24 hours. Looking at the charts, SOL is currently trading in the red region and continues to fall. However, the question whether SOL will continue to fall or experience a trend reversal this week is yet to be analyzed.

SOL chart (Source: CoinMarketCap)

The short-term and long-term trend, currently, has contradicting views when it comes to SOL. For instance, the candlesticks are trading below the 200MA, which is considered a bearish signal for the long term. Meanwhile, the MACD line is trading above the signal line, which confirms that SOL would experience a bullish trend in the short-term period. However, the short-term trend’s statement may not be accurate.

SOL/USDT 4-hour chart (Source: TradingView)

The MACD line is almost touching the signal line and could go below it. This will confirm that SOL will continue to be under the bear’s influence, this week. Moreover, the green bars in the histogram model are diminishing, confirming that SOL could face the bears’ attack soon. If the red bars form in the MACD histogram model, then, SOL will find it difficult to ride with the bulls, this week.

SOL/USDT 4-hour chart (Source: TradingView)

RSI also provides another confirmation that SOL would continue to face a bearish sentiment this week. Currently, RSI is valued at 36.56, indicating that SOL is facing a weak trend. Moreover, the RSI crossed SMA’s path and is below it, confirming that the indicator could continue to go downward. If the RSI reaches the oversold region, SOL would reach the Weak Low region.

Furthermore, if the RSI continues to reside in the oversold vicinity, SOL could continue to fall below the Weak Low region and reach the Support level.

However, traders need to keep close eye on the MACD indicator and the RSI before confirming SOL would remain under bear’s rule.

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.

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