SOL Technical Analysis: Price May Soon Fall Below the Support Levels of $39.82 and $39.23
SOL price has tested and fallen below the 50% FIB retracement level of $40.53. It may soon fall below the 38.2% FIB retracement level of $40.24 as well. Thus, as of now, the bears are strong. Hence, the price downtrend will continue today and tomorrow.
Solana is an open-source public blockchain network with high transaction processing speed. It is hack-free and censorship-resistant as well. It provides a highly scalable platform for creating decentralized apps that can be globally adopted. SOL is the native currency of this network. The SOL technical analysis is as follows:
On Jun 2, 2021, SOL opened at $30.94. On Jun 8, 2021, SOL closed at $41.24. Thus, in the past week, the price has increased by roughly 33%. In the last 24 hours, SOL has traded between $39.29-$41.78.
The MACD and signal lines have turned negative. Moreover, a bearish crossover by the MACD line over the signal line has occurred. Thus, the overall market momentum is bearish. Hence, we can expect the price to fall further.
Currently, the RSI indicator is at 35%. It faced rejection at 33% and rose to the current level. But, selling pressures are still high for SOL. Thus, the RSI oscillator is giving further credence to the bearish trend indicated by the MACD oscillator.
However, the OBV indicator is downward sloping. Thus, selling volumes are higher than buying volumes. High selling activity will exert downward pressure on the price.
In short, all three oscillators have given negative signals.
SOL Technical Analysis
Currently, the price is below the Fibonacci pivot point of $40.77. The price may soon fall below the first and second support levels of $39.82 and $39.23, respectively.
The price has tested and fallen below the 50% FIB retracement level of $40.53. It may soon fall below the 38.2% FIB retracement level of $40.24 as well. Thus, as of now, the bears are strong. Hence, the price downtrend will continue today and tomorrow.
The Bitcoin price nowadays is undergoing a phase of extreme uncertainty as the surge appears to be a fake breakout. And hence it has badly impacted the other crypto assets as well, which may include Dogecoin price too. DOGE price which maintains a stagnant trend in the past couple of months had showcased a slight …
The Bitcoin price nowadays is undergoing a phase of extreme uncertainty as the surge appears to be a fake breakout. And hence it has badly impacted the other crypto assets as well, which may include Dogecoin price too. DOGE price which maintains a stagnant trend in the past couple of months had showcased a slight uptrend, yet failed again.
The recent price movement suggests the continued downtrend as the dogecoin bulls did not showcase their power after the false breakout. And hence the price is struggling to surge above $0.3 levels. The depleting volume also points out towards the lessened activity on the platform as many may have snubbed DOGE after recently speculated manipulation.
Now, considering the present scenario, two possible price movements can be overseen. One, the bulls remain passive and allow the price to tank to the lower levels. In such case, the price may fail to rebound above $0.3. And the revisit the next support levels around $0.22 to $0.21. And after this plunge, the price may take quite a long time to regain the lost positions above $0.3. However, reaching towards ATH levels may appear a milestone which may not occur in near future.
On the other hand, if the bulls get accelerated, which is mandatory at the press time, the price may successfully clear $0.3 support levels. And later move upwards to attain the next target around $0.38 to $0.4. However, the ATH or $1 target still remains off the beaten track.
Collectively, the dogecoin price appears to trade within a decisive phase as the bulls need to get aggregated. Else a major slump for the DOGE price is on the way which may take a long time to retrace.
The ghost of stock market crash is back again to haunt Bitcoin (BTC).
It happened last in March 2020. Back then, the prospect of the fast-spreading coronavirus pandemic led to lockdowns across developed and emerging economies. In turn, global stocks crashed in tandem, and Bitcoin lost half of its value in just two days.
Meanwhile, the U.S .dollar index, or DXY, which represents the greenback’s strength against a basket of top foreign currencies, has now climbed by 8.78% to 102.992, its highest level since January 2017.
The huge inverse correlation showed that investors dumped their stocks and Bitcoin holdings and sought safety in what they thought was a better haven: the greenback.
More than a year later, Bitcoin and stock markets again wrestle with a similar bearish sentiment, this time led by a renewed demand for the U.S. dollar following the Federal Reserve’s hawkish tone.
Namely, the U.S. central bank announced Wednesday it will start hiking its benchmark interest rates by the end of 2023, a year earlier than planned.
Lower interest rates helped to pull Bitcoin and the U.S. stock market out of their bearish slumber. The benchmark cryptocurrency jumped from $3,858 in March 2020 to almost $65,000 in April 2021 as the Fed pushed lending rates to the 0%-0.25% range.
Meanwhile, the S&P 500 index rose more than 95% to 4,257.16 from its mid-March 2020 peak. Dow Jones and Nasdaq rallied similarly, as shown in the chart below.
And this is what happened after the Federal Reserve’s rate-hike announcement on Wednesday…
Meanwhile, the U.S. dollar index jumped to its two-month high, hinting at a renewed appetite for the greenback in global markets.
Popular on-chain analyst Willy Woo said on Friday that a stock market crash coupled with a rising dollar could increase Bitcoin’s bearish outlook.
“Some downside risk if stonks tank, a lot of rallying in the DXY (USD strength) which is typical of money moving to safety,” he explained.
Michael Burry, the head of Scion Asset Management, also sounded the alarm on an imminent Bitcoin and stock market crash, adding that when crypto markets fall from trillions, or when meme stocks fall from billions, the Main Street losses will approach the size of countries.
“The problem with crypto, as in most things, is the leverage,” he tweeted. “If you don’t know how much leverage is in crypto, you don’t know anything about crypto.”
Burry deleted his tweets later.
Some bullish hopes
Away from the price action, Bitcoin’s adoption continues to grow, an upside catalyst that was missing during the March 2020 crash.
On Friday, CNBC reported that Goldman Sachs has started trading Bitcoin Futures with Galaxy Digital, a crypto merchant bank headed by former hedge fund tycoon Mike Novogratz. The financial news service claimed that Goldman’s call to hire Galaxy as its liquidity provider came in response to increasing pressure from its wealthy clients.
Damien Vanderwilt, co-president of Galaxy Digital, added that the mainstream adoption would help Bitcoin lower its infamous price volatility, paving the way for institutional players to join the crypto bandwagon. Excerpts from his interview with CNBC:
“Once one bank is out there doing this, the other banks will have [fear of missing out] and they’ll get on-boarded because their clients have been asking for it.”
Referring to the question “are we in a bear market?” Woo said that Bitcoin adoption continues to look healthy despite the recent price drop. The analyst cited on-chain indicators to show an increasing user growth and capital injection in the Bitcoin market.
Of primary interest is capital rotation from stablecoins back into the crypto markets (I’ll say that’s mainly BTC since alt coins are reducing in dominance).
He also noted that the recent Bitcoin sell-off merely transported BTC from weak hands to strong hands.
“My only concern for downside risk is if we get a major correction in equities which will pull BTC price downwards no matter what the on-chain fundamentals may suggest. Noticing USD strength on the DXY, which suggest some investors moving to safety in the USD.”
Uniswap Reaches Bearish Exhaustion as Sellers Threaten to Short
Uniswap's (UNI) price has fallen to $19.58 low and pulled back. The downtrend has reached bearish exhaustion as buyers emerge in the oversold region. The current downturn has been ongoing as price makes a series of lower highs and lower lows.
Uniswap’s (UNI) price has fallen to $19.58 low and pulled back. The downtrend has reached bearish exhaustion as buyers emerge in the oversold region. The current downturn has been ongoing as price makes a series of lower highs and lower lows.
On the upside, Uniswap is rising as price reaches the oversold region. If the UNI rebounds above the current support, the price is likely to rally to retest the lower high of $25. And if buyers are successful at a recent high, the market will rise to the previous high of $30. Conversely, if the current upward move faces rejection at the recent high, the UNI/USD will further decline to $16.50.
Uniswap indicator reading
UNI is at level 38 of the Relative Strength Index period 14. It indicates that the crypto is in the downtrend zone and capable of falling on the downside. The crypto has fallen below the 20% range of the daily stochastic. It indicates that UNI is in the oversold region and that the selling pressure has reached bearish exhaustion. Buyers are likely to emerge.
Major Resistance Levels – $55.00 and $57.00
Major Support Levels – $22.00 and $20.00
What is the next direction for Uniswap?
UNI/USD has been in a downward move. Meanwhile, on June 4 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that the altcoin will fall to level 2.0 Fibonacci extension or level $20.98. From the price action, UNI has surpassed the 2.0 Fibonacci level as the altcoin approaches the $16 low.
Disclaimer. This analysis and forecast are the author’s personal opinions, are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.
Solana (SOL) has been increasing since bouncing on May 19.
However, it has broken down from the trendline of its upward movement and is showing several bearish signs.
Ongoing SOL bounce
SOL has been increasing since bouncing on May 19. The upward movement continued until a high of $44.2 was reached on June 7. The high coincided with the 0.618 Fib retracement resistance level (black).
While the token has been decreasing since, it has managed to hold on above the $36 support level, This area previously acted as resistance on May 26.
Despite being above support, technical indicators are gradually turning bearish. The RSI is in the process of crossing below 50 and the MACD is almost negative.
Cryptocurrency trader @Altcoinsherpa outlined a SOL chart, stating that until the token moves outside the current range, the direction of the trend cannot be determined.
The resistance area of the range is the same as the previously outlined $36 resistance area. On the other hand, the closest support is the 0.5 Fib retracement (white) support level at $31.5.
There are several bearish signs in place. First, the upward movement looks like an A-B-C corrective structure, since it is a three wave instead of a five wave structure. Second, SOL has broken down from an ascending support line and validated it as resistance afterwards.
Finally, technical indicators are bearish, similarly to those in the daily time-frame.
Therefore, a decrease towards the $3.50 support area and potential breakdown are likely.
The SOL/BTC chart has some similarities to its USD counterpart. It has broken down from an ascending support line and is trading just above the horizontal support level of 92,000 satoshis.
In addition, technical indicators are bearish. This is especially evident by the imminent bearish cross in the Stochastic oscillator (red icon).
Therefore, a drop to this area and potential breakdown could transpire.
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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo.
In 2019, he decided to focus full-time on cryptocurrencies and trading.