Solana Reaches Overbought Region And Fails To Overcome $24 High

Apr 30, 2023 at 11:04 // Price
Coin Idol
The market for Solana is now overbought

The price of Solana (SOL) is bearish as it crosses above the moving average lines.

Solana price long-term forecast: bearish

Solana has been moving mostly sideways since January 14. The upper resistance of $26 has proven too strong for buyers to overcome. The altcoin is now trading at its previous high of $23.25. The cryptocurrency's price fluctuates between $20 and $26. On April 28, when the price crossed the moving average lines, the altcoin regained positive momentum. The moving average lines are above the price bars, which indicates that the price of the cryptocurrency is likely to rise. Currently, the $24 level is a resistance for the uptrend. The altcoin will rise above the high of $26 if the current resistance is broken. The sideways movement will continue between $20 and $26 if the altcoin is rejected at the current high. 

Solana price indicator analysis

On the Relative Strength Index for period 14, Solana is at level 55. The cryptocurrency has a chance to go much higher as it is now in the bullish trend zone. Moreover, the price bars are currently above the moving average lines, which increases the probability of further upward movement. Solana is above the stochastic level of 80 on the daily basis and is experiencing positive momentum. The market for the altcoin is now overbought.

SOLUSD(Daily Chart) April 29.23.jpg

Technical indicators

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

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

What is the next move for Solana?

Solana is currently going through an upward correction after the recent negative dip on April 21. The increasing action has reached the overbought sector of the market. At the high of $24, the altcoin is rejected while it has a long candle wick. The thick wick of the long candlestick indicates strong selling pressure at higher price levels.

SOLUSD(4 Hour Chart) - April 29.23.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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