Solana (SOL) – Extending its descent beneath the ascending trendline

Solana (SOL) – Extending its descent beneath the ascending trendline

Posted on Monday, December 6 2021 at 9:34 pm GMT+0000

Solana (SOL) is extending its descent beneath the bullish trendline stretched from August and looking to close below the Ichimoku cloud for the first time since July. Adding to the gloomy picture is the appearance of the red kumo.

Furthermore, the five Ichimoku plots are revealing bearish signals since the tenkan-sen and kijun-sen lines are negatively aligned and the chikou span is diving below the price. In addition, momentum oscillators are indicating further selling pressures as the MACD crossed its signal line and dipped in the negative territory and the RSI is aiming south below its equilibrium.

Should sellers keep dominating, initial support could transpire from Saturday’s low as well as the 23rd of September swing high at 156. A breach below this area could take the price to the 12th of October low around 130 before stretching lower towards the 21st of September bottom at 115.

On the other hand, if upside forces develop, the price may face initial resistance near the tenkan-sen and kijun-sen at 202. Overcoming this obstacle, extra limitations could originate from the previous tops near the 240.