Solana Price Slides in Latest Sign of Crypto Market Turbulence

28 November 2022, 11:00 GMT+0000
Updated by Ali M.
28 November 2022, 15:10 GMT+0000
In Brief
  • SOL has reclaimed the $13 area and validated it as support.
  • The daily RSI generated bullish divergence.
  • SOL is trading considerably below long-term resistance at $32.
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The Solana (SOL) price reclaimed the $13 area and began an upward movement. Despite the relief rally, the long-term trend still looks bearish.

The Solana blockchain was created by Anatoly Yakovenko. It uses the proof-of-stake (POS) consensus mechanism and provides decentralized finance solutions. The SOL price had fallen since Nov. 10, when the $17.50 resistance area rejected it. The rejection led to a low of $10.94 on Nov. 22. This caused a breakdown from the $13 horizontal support area. 

However, the Solana price bounced afterward and reclaimed the $13 area, which will now provide support.

The reclaim was preceded by bullish divergence in the daily RSI (green line). As a result, the trend can be considered bullish as long as the trend line is still intact, and the SOL price is trading above the $13 area.

If an upward movement begins, the closest resistance would be at $17.50.

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Solana (SOL) price Daily
SOL/USDT Chart By TradingView

Will SOL Continue Relief Rally?

The technical analysis from the six-hour chart is bullish. The two reasons for this are the breakout from a descending resistance line and the bullish divergence in the RSI (green line). 

Even though the SOL price fell over the past 24 hours, the bullish divergence trend line remains intact, and the SOL price bounced at the $13 support area. Therefore, the short-term bullish trend is still valid.

As a result, the SOL price prediction from the six-hour time frame supports an increase towards $17.50.

Solana (SOL) price short-term
SOL/USDT Chart. Source: TradingView

Solana Price Future Trend Still Bearish

Despite some bullish short-term signs, the long-term trend is still bearish. The main reason for this is the breakdown from the long-term $32 support area which has been in place since July 2021. 

Furthermore, the weekly RSI has crossed below 30 and has broken down from its bullish divergence trend line (green).

It is also worth noting that there is some negative Solana news. Binance announced that it will delist three pairs of Serum (SRM), a coin that partners with the Solana foundation.

As a result, the long-term Solana price prediction is considered bearish until the $32 area is reclaimed. The next closest support area has an average price of $4.

Solana (SOL) Weekly Movement
SOL/USDT Chart By TradingView

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Disclaimer

BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.