Solana Approaches Bullish Exhaustion On Renewed Selling Pressure

May 28, 2023 at 11:17 // Price
Coin Idol
SOL/USD is now trading in the overbought zone of the market

The price of Solana (SOL) is still falling below the moving average lines.

Solana price long term forecast: bearish

After falling to a low of $18, the altcoin took an upward correction on May 24. The 21-day line SMA is expected to reject the bullish momentum. At the time of writing, the price of Solana is $19.65. The altcoin will see a further price decline based on the given pricing. If Solana is rejected at the current high, selling pressure will increase on the downside. Solana made an upside correction during the downturn on April 26, and the candlestick tested the 50% Fibonacci retracement level. After the correction, SOL will fall to the 2.0 Fibonacci extension level or $15.28.

Analysis of the price indicator Solana

On the Relative Strength Index for the period 14, the altcoin has fallen to the level 41. The altcoin is in a bearish trend zone and will most likely continue to fall. As the price bars have remained below the moving average lines, the downward movement will accelerate. Solana's daily stochastic value is above 80, which explains why the cryptocurrency market is overbought. The cryptocurrency has no more room for the bulls and could fall.

SOLUSD_(Daily Chart) – May 27.23.jpg

Technical Indicators

Key supply zones: $60, $80, $100

Key demand zones: $50, $30, $10

What is the next move for Solana?

SOL/USD is now trading in the overbought zone of the market. The rising correction is likely to come to an end, resulting in another decline. SOL is trapped between the moving average lines on the lower time frame. Once the price breaks below the 21-day line SMA, the decline will begin.

SOLUSD_(4 –Hour Chart) - May 27.23.jpg

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing in funds.

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