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- Solana sees a 0.79% decline to $196, but a strong 17.48% increase over the past week signals long-term growth.
- Entering wave 4, critical support levels lie between $189 and $197.76, with a risk of decline below $160.
- RSI at 39.89 indicates Solana is near oversold territory, suggesting potential for a price rebound if support holds.
As of press time, Solana (SOL) is trading at $196, indicating a 0.79% decrease in the last 24 hours. The trading volume has declined to $10.03 billion, a reduction of 29.53%. However, the short-term decrease is not reflected by high performance in the longer term: Solana increased by 17.48% in the last week.
Solana’s Wave 4 Cycle
More Crypto Online highlighted that the Solana currency is in the fourth wave of its price cycle. The support areas lie between $189 and $197.76. When the price drops within this range, it would indicate the beginning of circle wave 4. This wave should not lose support above the level of $160 or face additional decline. Closing below this level would raise concerns of a greater correction in the price of Solana.
Matthew Dixon revealed that he has increased his internal scale with Solana to the current number, after reaching a low of $126. He is anticipating an upward push prior to the end of the current cycle. There is some possibility of further price growth by Solana, followed by a correction. This follows the general optimism in the market about Solana, even though it had dipped in value. Dixon also notes that the coin continues to have a positive momentum in the days ahead.
Also Read: Solana Near $176 With Bullish Signals: Will Momentum Return Above $200?
The Relative Strength Index (RSI) of Solana is 39.89, already approaching oversold levels. Although the RSI indicator does not currently reside in extreme oversold territory, it suggests that Solana may be experiencing a correction. Traders will follow the price closely, watching for a possible ascending motion.
The Moving Average Convergence Divergence (MACD) of Solana is -0.92, whereas the signal line is at 0.07. This bearish divergence indicates that the bullish power is declining and the market is still under pressure. The histogram continues to go down, indicating that the price of Solana may experience more downward pressure unless it reverses.
Source: TradingView
Declining Market Volume
According to CoinGlass data, the market volume of Solana fell by 24.40% to $34.02 billion. Open interest has increased by 0.84% to $11.92 billion, and the SOL OI-Weighted Funding Rate is 0.0168%. These statistics indicate declining market volume against rising open interest, which is a sign that the markets are becoming less active.
Source: CoinGlass
Solana is currently in a critical stage of its market development. Although indicators of the short-term perspective are a little weak, the general market sentiment is positive. Traders can keep their eyes on important support areas that indicate a possible rebound in price movements. In case these levels are maintained, Solana might head straight up.
Also Read: Solana-Backed $200M Deal Marks New Era for Mercurity Fintech’s Blockchain Strategy
