Solana (SOL) and Serum (SRM) Struggle to Mitigate Bearish Trends

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In Brief
  • SOL is trading in a range between $1.40-$2.50.

  • Technical indicators are bearish.

  • SRM is trading inside a symmetrical triangle.

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The Solana (SOL) price is decreasing and has reached an important support area but has not yet shown any bullish reversal signs.



Similar to Solana, the Serum (SRM) price is trading inside a neutral pattern and is expected to continue consolidating inside of it.

 

Solana (SOL) Trading Range

Solana has been increasing since Nov. 5, when it reached a low of $1.22. The increase continued until a high of $2.51 was reached on Nov. 21.



This movement served to validate the $2.50 area as resistance, along with one more rejection on Nov. 25, which left a similarly long upper wick. SOL has been moving downwards since.

Technical indicators are bearish, supporting a continued downward movement. If so, the closest support area is found at $1.40.

SOL Chart By TradingView

Cryptocurrency trader @altcoinsherpa outlined a chart for Solana, which she believes will move in a similar direction.

However, SOL is still trading in its range without significant movement. Due to the reasons outlined above, a decrease toward support seems like the more likely scenario.

Source: Twitter

A look at a lower time-frame shows that SOL has almost reached a minor support level at $1.65. However, both the RSI and MACD are bearish, indicating that SOL is more likely to break down from this level than it is to move upwards.

A breakdown would likely take SOL towards the $1.40 support.

In addition, SOL is also following a descending resistance line. A breakout above this line would invalidate the bearish sentiment, but at present, it seems unlikely.

SOL Chart By TradingView

Serum (SRM) Outlook

Serum has been trading inside a symmetrical triangle since reaching a low of $0.79 on Nov. 4. SRM is approaching the point of convergence between resistance and support, at which point a decisive move is expected to occur.

The triangle is a neutral pattern, and technical indicators do not give a clear bias, so both a breakout or breakdown remain an even possibility.

If SRM breaks out from the triangle and increases the entire height of the pattern, it could reach the $1.70 resistance area.

On the other hand, a breakdown would likely take it toward new all-time lows.

SRM Chart By TradingView

Conclusion

While it’s possible that SRM will soon begin to move upwards, SOL may have to make another low to complete its pattern before beginning an upward movement.

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Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

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