Solana down after posting gains for several consecutive days

Avatar Robert Mayne 2 years ago

The sentiment in the cryptocurrency market is quite pessimistic, as we can see on the Telegram channel KEY ALERTS. This warns us that investors of SOL, BTC and the other cryptos, are very aware of the fundamental facts, and that at any time they can sell.

In addition, the Fed is stealing everyone’s attention, because on the 27th it will be defined how much the July rate hike will be. And, the results can generate a wave of sales in SOL.

Before talking about the details, it is worth noting that Solana is down and registers losses totaling 3.43% in the last 24 hours; according to data from CoinMarketCap. In addition, it accumulates a small loss in the last 7 days of 0.15%.

Fundamental, social and macroeconomic

The Solana Labs development team is working to offer better experiences to its different users. In this sense, we can even mention a recent post they made on the official Twitter of the project.

In addition to this, we can also note from LunarCRUSH that social volumes have been recovering in the last 3 months. As you can see, the mentions have increased a little more than 400%. And, it is a fact that is quite positive considering the current crypto landscape and the high feeling of fear that there is in the market.
Volume of social mentions of Solana
Volume of social mentions of Solana. Source: LunarCRUSH.

We emphasize once again that we have to be attentive to the results of the FED meeting that will take place on July 27. Because, in case there is a rise above the estimated, with the aim of controlling inflation, it is certain that we will see a retreat in prices to annual lows.

Technical analysis of SOL/USDT

On the 4-hour charts, SOL prices are oscillating and forming a wedge with higher and higher lows. However, at this moment the bulls have touched their upper level and a new pullback is being generated to the lower margins.

After the rejection at the upper level, a reversal in the trend was generated, and for the next few hours, it would be quite normal for bears to look for the lower margin. In the same way that we have exposed it in the lower graph.

SOL may continue to decline in the short term
The sun may continue to fall in the short term. Source: TradingView.

Once at this level we must pay attention to the support area that we have marked. Since, the wedge is about to break, and if we see a bearish confirmation, sales will place SOL around US $ 31.96. However, if the bulls manage to defend this level, SOL would be returned to the upper levels; close to US $ 47.

On the other hand, a fact that confirms the probabilities of continuing to rise are the technical indicators. The RSI reports rejection for falling below 42 points and the MACD has a histogram that shows weakness in the bearish continuity. Therefore, it is almost certain that the bulls will be able to defend this support zone and push prices higher once again.

The information in this content should be taken for informational purposes only, not intending under any point of view to urge the purchase / sale of financial assets.

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