Solana Falls Short of $300 Breakout as SOL Sellers Dictate Price Movement

by

As a seasoned crypto investor with scars from past bear markets etched deep into my portfolio, I can’t help but feel a sense of deja vu when looking at Solana (SOL). Despite the brief flirtation with $300, it seems that SOL is once again struggling to break through this psychological barrier.

As an analyst, I’ve observed that despite a brief indication of upward momentum, Solana (SOL) has yet again fallen short of reaching the $300 mark. This recurring failure might be attributed to the strong presence of Solana sellers who have been more active than buyers in recent times.

With bears leading the way, this analysis checks if SOL could escape another downturn or not.

Solana Bearish Momentum Prevails

Looking at the daily SOL/USD chart, we noticed that the Balance of Power (BoP) indicator dipped into the negative region. This BoP indicator, which is a technical tool based on price analysis, helps gauge the strength and dominance of buyers relative to sellers. It provides traders with useful insights about the power struggle between buyers and sellers, as well as hints at possible shifts in market trends.

In simpler terms, when the Balance of Power (BoP) is positive, it means buyers have more influence, potentially leading to an increase in prices. On the flip side, if the BoP is negative, it suggests sellers are in charge, raising the possibility of a decrease in prices due to their control over the market.

As we speak, the Break-Even Point (BoP) stands at -0.54, suggesting a robust selling pressure on Solana and hinting at possible downward price trends for Solana due to bearing momentum.

As a researcher, I’ve noticed another sign hinting at a potential decrease in Solana’s (SOL) price: the Chaikin Money Flow (CMF). This technical indicator quantifies the inflow and outflow of capital within a cryptocurrency by assessing buying and selling pressure. A low CMF value might indicate that more money is flowing out of SOL than into it, suggesting potential downward price movement.

As an analyst, I utilize price and trading volume data to analyze market trends. The Commodity Channel Index (CCI) helps me pinpoint times of accumulation, or increased buying pressure, and distribution, characterized by selling pressure. A positive CMF value indicates robust accumulation, signaling potential upward momentum, while a negative value highlights distribution and potential downward trends, possibly indicating bearish tendencies.

Currently, the moving average (CMF) on Solana’s daily chart has dipped into the negative zone, specifically at -0.05. This current rating suggests that Solana sellers are dominating the market and keeping potential buyers at a distance. If this trend persists, it could potentially lead to a continued decrease in SOL price.

SOL Price Prediction: Support Broken, Downturn Continues

According to the daily price chart, Solana’s value has been moving within a downward trending channel since it hit a new peak on November 22. It’s worth mentioning that the graph illustrates that Solana’s worth has dropped below its previous support level of $225.74.

A dip below the current support level seems to indicate a possible further drop in Solana’s price, potentially leading to a significant correction. Should this prediction hold true, the token might fall to approximately $203.63, as long as the selling pressure continues to dominate the market.

Conversely, should the power shift to buyers, this prediction may not materialize. Under such circumstances, the cryptocurrency’s worth might soar to $264.66. In an extremely optimistic situation, the altcoin could potentially reach $300 and burst through that barrier.

Read More

2024-12-13 11:39