Solana (SOL) – Setting the stage for the next bearish wavePosted on Wednesday, May 18 2022 at 9:18 pm GMT+0000
Solana’s (SOL) recent recovery from a near 10-month low of 36.20 has hit a snag in the vicinity of the middle-line of the regression channel pulled from the 2nd of April top, and downside forces are picking up again.
The stochastic oscillator which reclaimed a negative charge below its equilibrium is backing up the above bearish perspective, while the KST suggests that bears won’t abandon the ship anytime soon, as it continues to dive well below its signal and zero lines.
In trend indicator, the persistent negative bearing of the 20- and the 50-day exponential moving average is nourishing the current bearish structure.
Hence, sellers’ eyes are currently turned towards the 12th of May low at 36.20 overlapping with the lower-line of the channel, while looking to stretch the more than 6-week descent. By cracking down that floor, they will initially target the Fibonacci golden number of the 36.20-59.22 up-leg at 21.97. further lower, they will shift their attention to the 227.2% at 6.92.
On the flip side, if positive signs emerge and the price surpasses the 59.22 barrier, bulls will boost the price towards the 24th of February low at 75.00 just above the 20-day exponential moving average. Conquering this barricade, they will then advance towards the nearby 50-day exponential moving average at 83.50, while higher the April 18th inside swing low at 94.75 will come under attack.
To summarize, Solana is exhibiting a bearish outlook beneath the exponential moving averages and inside the regression channel, and a break below the 36.20 will confirm new selling activities.