Solana (SOL) – Exposed to additional bearish developments

Solana (SOL) – Exposed to additional bearish developments

Posted on Thursday, August 25 2022 at 8:38 pm GMT+0000

Solana (SOL) has been edging sideways over the last few days below the Ichimoku cloud, after the harsh correction from the one-month highs which has sent the price beneath the ascending channel stretched from the June 14th bottom.

The Ichimoku lines are indicating that negative forces are making efforts to take control, and the technical indicators are suggesting that the bearish momentum is growing. The KST is gliding beneath its signal line in the negative region and the momentum indicator is diving below its equilibrium level raising the stakes for additional declines in the coming sessions.

However, trying to fuel another leg lower, sellers will have to breach the nearby July 26th bottom of 34.66 which has acted as a safety net lately. Not far below the July 13th low of 31.80 will appear on the radar. If downside pressures endure, the June 14th bottom of 29.50, which also consists of the target of the channel, may come under examination.

On the flip side, if the price jumps over the Ichimoku plots around 39.25 – 41.07 and the return line of the channel, the gates will open for a fresh challenge of the recently tested resistance area of 47.36 – 48.37. A sustainable move above this barricade will likely trigger a new buying wave toward the May 15th peak of 59.22.

All in all, Solana’s downside risks prevail despite the softening to a degree of the price bearish bearing. A drop below the 31.80 support level could spark deep worries about growing negative tendencies.