In the previous month, Solana (SOL) has failed to make progress as the token fell victim to the market contagion brought about by the collapse of crypto exchange FTX.
As of this writing, all time horizon indicators for Solana’s native token SOL are red.
Since succumbing to market contagion, Solana has continued to bleed
Using bearish metrics and technical indicators, we may anticipate a more negative outlook.
The token and ecosystem of SOL are not looking good according to other indicators. As per LunarCrush’s data, both social media mentions and engagements are declining.
Messari adds that the asset’s unappealing volatility and low returns make it less attractive to investors and traders.
What will happen to SOL now that its price has dropped below $14? Will it pull out of the dark or sink much lower?
Solana Price Trajectory: Below Its Target
The coin has been trading around $13.5314, well below the bullish aim of $14 and $15. Recent weeks have seen SOL bulls aiming for this level.
It all starts on November 15 when bulls attempt to reach $15 but fail.
After these attempts, the price fell below $14, where it has remained ever since. Due to bearish technical indicators, it is unlikely that SOL will surpass the $14 or $15 barrier level.
On a timescale of four hours, the token’s RSI values are neutral and declining. The bearishness of SOL is further corroborated by its MFI, which is likewise declining.
Although the token’s Bollinger band is rather wide, the moving average of is acting as resistance at $13.8150.
In spite of this, a positive price pullback may still be warranted, as the prior price movements were in sync with the bullish XABCD harmonic pattern.
If momentum permits, the price pullback objective will be $14 with a probable aim of $15.
With negative technicals, however, bulls can rely on the $13.3081 support to help maintain sideways momentum and as a potential rally launching point.
SOL Bears Are Everywhere
Although the support has been resilient against the bears’ previous assaults, a breach of the $13.3081 support might send the price below $13.0951. Overall, SOL will not rebound in the near future.
There is a greater probability of a negative breakout in SOL, so investors and traders should tread carefully.
SOL total market cap at $4.6 billion on the daily chart | Featured image: Freerange Stock, Chart: TradingView.com