Solana (SOL) – Struggling within a downward sloping channel

Solana (SOL) – Struggling within a downward sloping channel

Solana (SOL), has been developing in a downward sloping channel since the beginning of December, exhibiting an obvious bearish picture. The recent recovery attempts had been curbed by the Ichimoku directional lines, which pressed the price back lower.

The momentum indicators are skewed to the downside, promoting additional price depreciation. The Stochastic %K line has pushed back beneath the %D line, and towards the 20 mark, while the momentum indicator is losing steam below the zero level.

Since negative pressures are expected to intensify in the coming sessions, the spotlight is turned towards Monday’s low of 91.00. Should it give way, the door would open for the January 24^th bottom at 80.80, where any violation will bolster the negative picture sending the price most likely below the August 25^th swing low at 66.20 and initially towards the return line of the channel.

On the flip side, if buyers start to push back, and successfully overstep the Ichimoku lines at 101.40 and 104.00 respectively, they could find strong downside pressures around the February 2^nd high at 122.00, near which the trendline of the channel and the Ichimoku cloud reside. Breaching these barriers, the focus will shift to the upper surface of the cloud at 138.30 ahead of the January 13^th top of 157.70.

All in all, Solana has been struggling within a downward sloping channel over the last couple of months and is still exposed to additional negative developments. Only a jump higher beyond the downtrend line and the 122.00 high can ease negative risks.