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Solana [SOL]: Bears break under $20 as sellers look to extend gains


Johnivan0

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Solana [SOL] remained on a perpetual bearish slide, despite a recent report highlighting increased network usage for the altcoin. The inflow of new users hasn’t had any significant impact on SOL’s price. The bearish momentum saw the price close below the key $20 support level over the past 24 hours.

With Bitcoin [BTC] retesting the 26k price zone, bears might be tempted to push for more dips. However, the bulls could immediately look to reclaim the $20 support level.

Prolonged selling pressure has seen Solana lose over 24% of its value in the past month. Price broke through the $22.8 support level on 6 May but bulls put up stiff resistance at the next support level of $20.

 

Despite the bullish pushback at $20, recent price action and on-chart indicators suggested that bears might be winning the battle to swing prices lower.

 

Additionally, the Relative Strength Index (RSI) stayed under the neutral 50, since 7 May and stood at 36, as of the time of writing. This showed increased selling pressure on SOL. The On-Balance Volume (OBV) also declined by 8.49 million over the past seven days to indicate waning demand for SOL.

 

The 12-hour chart showed a bullish candle that broke through the $20 support level immediately after the bearish candle close. A full bearish 12-hour candle close under this level for Solana might signal the bears prevailing and sellers could aim for the $18.8 support level.

 

While the on-chart indicators favored the bears, the previous bullish rally at the $20 support level could offer buyers a fighting chance to reclaim the level and push for further gains. BTC recording bullish gains in the coming days could spur SOL buyers.

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The recent report on increased network usage for Solana [SOL] didn't have a positive impact on its price, as the altcoin continued to experience a bearish slide. Despite new users joining the network, SOL's value dropped by over 24% in the past month. The $20 support level was breached, and bears are currently dominating the market. On-chart indicators, such as the RSI and OBV, suggest increased selling pressure and waning demand for SOL. However, if buyers can rally and reclaim the $20 level, there might be a chance for a bullish comeback, especially if Bitcoin [BTC] also sees positive gains in the near future.

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On 5/23/2023 at 10:33 AM, Johnivan0 said:

Solana [SOL] remained on a perpetual bearish slide, despite a recent report highlighting increased network usage for the altcoin. The inflow of new users hasn’t had any significant impact on SOL’s price. The bearish momentum saw the price close below the key $20 support level over the past 24 hours.

With Bitcoin [BTC] retesting the 26k price zone, bears might be tempted to push for more dips. However, the bulls could immediately look to reclaim the $20 support level.

Prolonged selling pressure has seen Solana lose over 24% of its value in the past month. Price broke through the $22.8 support level on 6 May but bulls put up stiff resistance at the next support level of $20.

 

Despite the bullish pushback at $20, recent price action and on-chart indicators suggested that bears might be winning the battle to swing prices lower.

 

Additionally, the Relative Strength Index (RSI) stayed under the neutral 50, since 7 May and stood at 36, as of the time of writing. This showed increased selling pressure on SOL. The On-Balance Volume (OBV) also declined by 8.49 million over the past seven days to indicate waning demand for SOL.

 

The 12-hour chart showed a bullish candle that broke through the $20 support level immediately after the bearish candle close. A full bearish 12-hour candle close under this level for Solana might signal the bears prevailing and sellers could aim for the $18.8 support level.

 

While the on-chart indicators favored the bears, the previous bullish rally at the $20 support level could offer buyers a fighting chance to reclaim the level and push for further gains. BTC recording bullish gains in the coming days could spur SOL buyers.



 

Despite the increased network usage and new users, Solana [SOL] has been facing a continuous bearish trend. The recent decline in price led to a close below the key support level of $20. The altcoin has experienced a significant drop of over 24% in the past month. On-chart indicators, such as the RSI and OBV, indicate strong selling pressure and a decline in demand for SOL. If the bearish momentum persists and the $20 level is not reclaimed, sellers may target the next support level at $18.8. However, if buyers can rally and regain control at the $20 level, there is a possibility of a bullish recovery, especially if Bitcoin [BTC] shows positive price movements in the coming days.



 

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