The price of Solana is $127 for a drying or resting place
Solana (SOL) is currently moving towards $127, a critical level that can support a recovery or lead to further decline. Throughout the year, this price point has repeatedly served as an important support for the altcoin.
However, the situation seems different this time, indicating that the results after past events may not match the current results.
Solana went out of touch.
According to the daily chart, the $127 region has served as a major support level for Solana at least three times this year. For example, in March, Solana prices rose from $127 to $200 after bulls defended support.
Fast forward to May, and the same thing happened: the token rose to $187.58 after retrieving the $127 support. Recently, the price reached $184 after a few weeks of finding itself in the same situation.
However, almost every time this happens, Solana price trades above the 200-day EMA (orange) to confirm bullish bias. As of this writing, the value is below the index, so that won't happen.
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If Solana's price falls below this range, it could drop to $110. Adding to the bearish outlook, the On Balance Volume (OBV) indicator highlights the negative structure of the market.
Typically, an increase in OBV indicates a price cut when measuring demand and supply. However, in Solana's case, a low OBV reading indicates that the spread is occurring, suggesting an accelerated downward trend.
SOL Price Prediction: Will the Bears Win?
A closer review of the daily chart shows that the Awesome Oscillator (AO) is negative. AO is a technical indicator that measures momentum, comparing recent price movements to historical ones.
A positive reading indicates an upward trend and is necessary to confirm a price increase. Since the AO reading is negative, the momentum around the SOL is weak, and as such, the price may decrease.
From the image below, Solana price can be lowered to $124.18. If selling pressure intensifies, the altcoin price may slip below $110.
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However, if bulls successfully defend the $127 range, the SOL price may jump to $136.61, negating the bearish forecast.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
