Tuesday, May 17, 2022
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SOL price trades on a muted note with modest gains. The price glides into a tight range with limited price action. However, the formation of the ‘Doji’ candlestick indicates indecision among investors. As the altcoin hovers in a narrow phase, the next candlestick would set the directional bias.

  • SOL price retreats below $50.0 as the selling pressure remains intact.
  • On the 4-hour chart, the price approaches the 20-day EMA predicting more gains above this level.
  • A weekly candlestick below $36.0 would invalidate the bullish outlook on the asset.

SOL price trades sideways

Source: Trading view

SOL price is still struggling to recover post a broader market sell-off. There seems to be no end to this massive downside trend. On moving down, the SOL price tested the lows of $35.0 for the first time in 10-month.

The descending trend line from the record highs acted as a strong resistance barrier for the bulls. The price tested the bearish line thrice but was unable to get through making lower lows. A slippage below the 20-day EMA (Exponential Moving Average) at $118.07 on March 28. Since then, the price dropped by 69%.

Source: Trading view

Source: Trading view

Currently, the price hovers near the crucial $50.0 mark, a sustained buying pressure would push the price higher to test $60.0. The next upside filter stands at 100-day EMA (Exponential Moving Average) at 74.

On the flip side, a weekly candlestick below $36.34 would invalidate any bullish outlook on the asset. In that case, the price could drop to the levels last seen in August 2021, at $32.36.

As of press time, SOL/USD trades at $50.24, up 2.66% for the day.

 

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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