Solana (CRYPTO: SOL) is trading lower Wednesday as the cryptocurrency market is seeing a red day. The crypto is cooling off after seeing a strong day up Tuesday. Solana recently bounced off a key level and is heading back up toward a level of resistance.
Solana was down 11.08% at $99.75 Wednesday afternoon at publication.
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Solana Daily Chart Analysis
- Solana was able to bounce off the $85 level and has seen a few green days in a row. Today, the crypto is falling lower and possibly consolidating after the recent climb. The next strong area of resistance may be found near the $130 level as this was once an area of support.
- The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue). This shows the crypto is trading with bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) has been slowly climbing over the past weeks and sits at 38. This is showing that buyers have moved into the market although the selling pressure still outweighs the buying pressure.
What’s Next For Solana?
Solana may have a rebound after the strong bearish market has been hitting crypto over the past couple of months. Solana needs to show it can form higher lows for the trend to change. Bullish traders want to see the higher lows form and for the price to cross above the moving averages. Bulls then want to see the price cross above the $130 level and be able to hold. Bearish traders are looking to see the price start to fall back lower and cross back below the $85 level. Bears are also looking to see the RSI fall back below 30 and enter into the oversold region.
