Altcoin Solana price has been on the decline lately. The price is down 12% to come into a demand zone that is currently offering support. Accordingly, the price found support at $19.15. However, there are now signs that the price will increase. Let’s look at the details.
Altcoin Solana may switch to flight mode
Altcoin Solana (SOL) price has been stable since late August in response to the US Securities and Exchange Commission (SEC) delaying decisions on spot BTC Exchange Traded Funds (ETF) applications. Bitcoin price is down almost 7% to trade at $25,821 at the time of writing. On the other hand, altcoin Sol dropped to $19.57 due to the recent decline in the market.
On the other hand, Solana price is feeding the uptrend. Altcoin Solana (SOL) price continues its uptrend despite the bearish divergence that saw the altcoin drop by around 2% in the last 24 hours. As a side note, crypto exchange FTX has transferred more than $10 million worth of tokens from the Solana network to the Ethereum blockchain. Accordingly, Solana executives urged FTX to distribute these tokens among community members.
#FTX cold wallet: 6b4aypBhH337qSzzkbeoHWzTLt4DjG2aG8GkrrTQJfQA, is transferring funds.
Tokens such as $LINK, $SUSHI, $LUNA, and $YFI on the #Solana are transferred to the #Ethereum through bridges such as #Wormhole. pic.twitter.com/UP4Cts1dvq
— Ethereum Journal (@EthereumJournal) September 2, 2023
Dominance is increasing
As social dominance increases for altcoin SOL, the token is heading north. Also, momentum indicators support this. In particular, the Solana price is currently in an order block that is often characterized by aggressive buying. This block is within the $19.85 to $19.41 demand zone. Increasing buying pressure from this zone could send the Ethereum killer up 10% to the $22.09 resistance level.
This level of resistance is significant for Solana price considering the 100-day, 50-day and 200-day Exponential Moving Averages (EMA) rallied at $21.70, $21.91 and $22.46, respectively. This makes it a dense supplier congestion zone. Accordingly, it will likely be a reversal point for the expected uptrend.
If bullish for altcoin SOL
In the case of a hard uptrend, Solana price will surpass these resistance levels. Accordingly, it will retest the July-August high around $25.23. If the Bitcoin price shows strength, the probability of such a result will increase even more.
Meanwhile, the Relative Strength Index (RSI) is rising. It also points to rising momentum. Similarly, Awesome Oscillator’s histogram bars also point towards the midline. On the other hand, developments add confidence to the upside for altcoin SOL.
downward movement
Conversely, if the altcoin Solana price drops below the middle line of the order block, the odds will shift in favor of the bears. An invalidation of the current bullish thesis would occur if a decisive daily candlestick close below the $19 threshold and potentially tags the bottom of the order block at $18.41.
In this case, Solana price will drop to the $17.34 support level. Worse, on the other hand, a pullback to the $14.49 level, which was last seen in mid-June, is possible. Notably, both momentum indicators are located in dangerous zones. Accordingly, the RSI is below 50 and the AO is negative. All this leaves the altcoin SOL market open to a downtrend when we look at cryptokoin.com. Remarkably, a drop below $18.41 will turn the demand zone into a bearish breaker.
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