Solana (SOL) – In a bearish situation inside the descending channel

Solana (SOL) – In a bearish situation inside the descending channel

Solana (SOL) has been forced to move backward thanks to resistance from the upper-line of the descending regression channel pulled from the 13 of May intraday peak.

The short-term oscillators shifted south suggesting that sellers may retake the reins. The RSI is losing ground in the positive region and approaching the 50-neutral threshold, while the %K line of the stochastic oscillator dipped harshly below the %D line promoting further bearish developments.

Moreover, the negatively aligned 20 and 55-period exponential moving averages are sponsoring the short-term bearish outlook.

If the bears drop below the exponential moving averages and the middle-line of the channel, they will approach the 4^th of June low at 36. By snapping that floor, they will slice through the lower line of the channel and tackle the 161.8% Fibonacci golden number of the last leg higher at 30. Breaching this barrier too will pave the way toward the 261.8% Fibonacci extension level at 21.

In the event of a turnaround, the price will first need to exit the channel and overstep the 45 hurdle. Such a move will lead the path to the 23^rd of May high at 55, ahead of the 15^th of May top at 59.

In brief, Solana is in a bearish situation, locked inside the descending channel, and only a move above the 45 could bring some optimism for a more significant recovery, while a drop below the moving averages will accelerate the sell-off likely to new lows.