Solana (SOL) made a big upward move last week, but has been falling in recent days, which raises doubts about its future trend.
At the close of the article, SOL was operating with a drop of 6% this Thursday (25), according to data from CoinGecko. As a result, it has the worst performance among the Top 10 in capitalization on the day.
However, the altcoin still accumulates an appreciation of more than 5% in the last seven days. With this in mind, technical analysis can give indications which way the asset will go in the coming days.
SOL breaks downtrend line
The native token of the Solana network began a new jump on April 18, rising more than 20% in the following four days. With this, it managed to overcome a descending trend line that had been in place since the first day of the month, when it formed a double top (orange circles) close to US$200.
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However, the price fell again after the breakout, seeking to validate the trendline as new support. If this indeed happens, SOL should continue to rise, potentially rising 25% towards its nearest top, at US$180.
Read more: 4 cryptocurrencies that could reach new highs in April
Price prediction
On the other hand, trading below the line again would indicate that the trend continues to be down. The crossing of the exponential moving averages (EMAs) shows that this scenario cannot be ruled out, as the 9-day EMA (blue) remains below the 21-day exponential moving average (orange).
Fernando Pereira, an analyst at Bitget, is pessimistic about SOL’s future movements. According to him, the low volume seen during last week’s upward movement shows that buyers do not have the strength to seek new tops.
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The rise with low volume in the last 5 days already indicated to us that it was just a ‘pullback’ to fall again. the increase in sales volume when we rose half the drop at the beginning of the month now indicates a likely return to the region of 120 dollars in the coming days.
In this scenario, Solana’s price would fall by around 15% to test this level.
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