Solana Price Analysis: SOL Price Dips After Failing to Breach $167 Resistance

Solana (SOL), despite starting the day on a bullish note, an intra-day high of $167.98 proved too stiff to breach. After this resistance, bears seized market control, with prices plummeting to a low of $164.22 before establishing support.

This decline comes after a bullish week that, according to CoinMarketCap, sent the SOL price to a weekly high of $173.57 despite starting the week with a low of $162.13. As of press time, the SOL price was exchanging hands at $164.52, a 1.47% decline from the intra-day high.

During the dip, SOL’s market capitalization and 24-hour trading volume declined by 1.70% and 48.24%, respectively, to $75,422,265,900 and $1,128,051,457. This dip reflects a decline in investor interest due to the recent decline in the price.  If the bearish momentum breaches the support level at $164.22, the next support levels to watch out for are at $160 and $155. However, if the bulls manage to push the price above $170, it could signal a potential reversal in the short term. 

SOL/USD Technical Analysis

On the SOLUSD 4-hour price chart, the Relative Strength Index (RSI) trends south with a rating of 41.75, suggesting an adverse trend. This RSI rating points to a continuous bearish shift if bulls do not resume market control. Moreover, since the RSI is yet in the  oversold region, bears still have more room for control. 

The Money Flow Index (MFI) rating 33.46 also adds to the negative trend. This rating suggests that money flows out of the market as traders anticipate a more adverse trend. However, since it's shifting upwards, the bearish pressure may be waning, and hence, a potential reversal maybe looming after the extensive bearish action.  

With the Moving Average Convergence Divergence (MACD) moving below its signal line and in the negative region with a reading of -0.72, bears have the upper hand. The histogram trend has also moved in the negative region, supporting the increasing selling pressure and, hence, a potential retest of the intra-day low. If the MACD line shifts above its signal lien a bullish reversal maybe underway. 

The Chaikin Money Flow (CMF) also suggests that money is flowing out of the market, hence a potential continuation of selling pressure. If this trend persists, traders may need to set stop loss orders to prevent further losses.