Solana (SOL) – looking to stretch the decline inside the descending channelPosted on Wednesday, January 19 2022 at 9:22 pm GMT+0000
Solana (SOL) last week’s recovery effort proved fruitless, as the 38.2% Fibonacci retracement level of the last bearish wave and the 20-day exponential moving average managed to press the price lower towards the 129 low.
Additionally, the descending regression channel stretched from the November 6 peak to January 9 low managed consistently to maintain the price’s negative trajectory.
Technically, the falling exponential moving averages are sponsoring the bearish attitude as the 55-day EMA is looking to down cross the 100-day EMA. The Stochastic lines reclaimed the negative charge and the RSI is sloping southwards marginally above its 30 oversold level.
If the current weakness persists, a decisive close below the last week’s low of 129 will send the price straight towards the section formed between the late September’s trough at 116.0 and the 161.8% Fibonacci extension of the 130.0 – 157.9 up-leg at 112.8. Further lower, the region encompassing the 261.8% Fibonacci extension and the August’s inside swing high around 84.0 will come under the radar.
If buyers regroup and manage to steer the price higher, preliminary resistance could emanate from the 20-day EMA around 151. Some distance higher, upside progress may be challenged by the recently tested resistance of 158.
To summarize, the technical picture is favoring additional losses for Solana, though only a sustainable move beneath the 129 level could add extra fuel to the ongoing downtrend.