Solana’s The value has fallen 25% in the past month and continues to remain below key moving averages recently. This decline suggests that SOL is having difficulty breaking above resistance levels, further weakening the market’s positive sentiment and signaling the potential for an extended price decline.
What’s Happening on the Solana Front?
Solana’s The latest readings from its one-day chart show its price falling below both the 20-day exponential moving average (EMA) and the 50-day simple moving average (SMA) on August 27, and its attempt to stabilize above them has failed. Currently, SOL’s 20-day EMA average is $147.72, its 50-day SMA average is $155.74, and SOL is trading at $137.86 at the time of writing. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
The 20-day EMA reflects SOL’s average closing price over the last 20 days, and the 50-day SMA tracks the average closing price over the last 50 days. In a downtrend, these moving averages act as resistance levels where the asset often encounters significant selling pressure, making it difficult for the price to break above them.
LEFT spent most of the month trading below the 20-day EMA and 50-day SMA moving averages. Although a brief wave of buying pressure pushed the price above these averages on August 24, this rally was short-lived as profit-taking activity quickly pushed the price back down. When the price drops below the 20-day EMA and 50-day SMA moving averages, it reinforces a downtrend. Failure to stay above these moving averages indicates strong selling pressure and a lack of buying interest to push the price higher.
LEFT Graphic Analysis
The Left Sentiment in the futures market mirrors the bearish outlook in the spot market, with investors increasingly taking short positions in the past two days. Since August 28, SOL’s funding rate has remained negative, suggesting that more investors are betting on a further decline in the asset’s price.
If the current downtrend continues, the price of SOL could drop to $133.64. If the negative sentiment continues, the next target could be $110. On the other hand, if there is a pick-up in demand, the price of SOL could recover and rise to $148.27.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
