Solana Price Analysis: Will the Downtrend End at $20.6?

8:37 am (65 days ago)

September 27, 2023

Solana (SOL) has been experiencing a downtrend since the end of July. The TVL of the network has also been on a decline for a while. However, this situation may not be a cause for excessive concern for investors. Developments related to Solana indicate the company’s determination to grow. QCAD has been launched on the Solana network. Stablecorp has announced its intention to expand the on-chain FX market by providing access to millions of Solana users in Canada with digital dollars.

Current Status of Solana Price

At the time of writing this article, SOL appeared to have a bullish market structure when analyzed on the four-hour chart. During the recent period, the lowest price level was $18.58, and the highest level was in the $20.54 range. The inability to surpass the $20.6 level was not very encouraging for investors and those looking to make new investments, but there may still be some hope.

To shift the structure towards a downtrend, it is necessary for the price to drop below $18.58. Until then, bulls can hope for SOL to form a short-term range, consolidate, and then rise again. However, when analyzing the charts, it is evident that sellers have the advantage.

Relative Strength Index (RSI) has been below the neutral 50 level in recent days, and On-Balance Volume (OBV) has failed to break this resistance despite several attempts since September. Together, these indicators suggest that Solana prices may drop to the $18.6 level and even lower in the coming days.

The Future of Solana

Open Interest (OI) has been in a downtrend since September 20. The price was hovering between $19.4 and $19.6. However, in the past few days, it appeared to lack a strong trend that could encourage investors. This was interpreted as a decrease in the bullish trend in the market and a loss of confidence among long position investors.

Spot Cumulative Volume Delta (CVD) also showed a downtrend structure throughout the past week. This may indicate weak demand in Solana spot markets. Therefore, for SOL to have a chance of surpassing the $20.6 resistance in the coming days, these factors may need to change.

Disclaimer: The information provided in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and risks and should conduct their own research before making any transactions.

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