Solana
Why is Solana (SOL) price falling today?
Despite all the favorable market dynamics, meme coin growth, ETF approval, community governance vote for the validator, and PayPal’s launch of the PYUSD stablecoin on the Solana network, the Solana (SOL) the price has been falling for a week.
The leading meme coin network, SOL, surged today, May 30, from $176.8 to $165 with the move of a technical indicator and moving averages from bullish to neutral zone.
Solana faces downward pressure
Market movement is usually decided by multi-factor scenarios, in this case Solana’s fundamentals all look favorable.
Solana the price declined -6.63% over the last 7 days, in the range of $160 to $170 and is currently trading at $165.5. The approval of the Ethereum ETF has seen Solana rise nearly 21.7% over the past month despite a highly volatile market.
Price action is slightly corrected, reflecting high volatility, increased selling pressure and falling volume. But SOL remains strong, kept the wave above previous support zones and showed resilience to break out intensely in any direction.
Current technical indications show a breakout in progress for Solana in the direction decided by sellers.
Technical data predicts a strong move
If the current price continues to decline below $160, the price will follow the trend towards the $150 area. Conversely, increased buying pressure will reclaim $170 and fuel the rise towards $185 and $200.
The SOL/USDT 4-hour chat reveals a sideways chart pattern with a mixed outlook. The RSI reading at 50 shows that prices are trading in a neutral zone with no overbought or oversold conditions. While the MACD also represents a crossover into neutral territory.
The Sideway chart pattern is generally a neutral zone for price and is best considered by traders when placing positions.
The overall trend of Solana is bullish, this correction phase should be monitored with caution. Followed by market sentiment, price appears to continue the sideways wave for a few more moments before retesting $160 to create a buying opportunity and then trending back up to $180 and above in June 2024.