Since the time when Solana (SOL) price hit an all-time high of $259 in November 2021, the currency has been riding on a downhill. In the month of July 2022, Solana even hit a low of $25.86, a drop of 90% from its all-time high.
Meanwhile, today when the Solana community woke up with news of a Solana hack of approximately $5 million, the price has taken a hit.
Solana price had retracted after it climbed the 0.382 Fib retracement level. Also, the weekly RSI surpassed its bearish divergence trading zone. Yet, Solana has not gained any bullish divergence as it is still beneath the range of 50.
There is also a possibility of Solana shadowing the falling resistance trend since its ATH. If this taking is true, then the line will most probably meet the $80 horizontal resistance area.
Meanwhile, when the daily chart is considered, since June 13, SOL is surging within the ascending parallel channel. Correction signals are often seen in ascending parallel channels, indicating that a breach is most likely to occur.
At the moment, the Solana (SOL) price action is within the base of the ascending parallel channel, hence increasing chances for a breakdown.
The daily RSI, that is currently on the verge of falling under 50, is another indicator that this scenario is realistic. If one does, the nearest support level is at $23.
Solana Price On Bearish Trend
Next, the six hour chart is indicating towards SOL’s double top and this formation is a bearish trend. Additionally, the double top has also been accompanied by bearish divergence in the RSI, which strengthens the validity of the formation even more.
Given these values, the six-hour chart is in accordance with the daily chart and shows that a drop could be the highly probable outcome.
At the time of publication, Solana (SOL) is changing hands at $40.05 after a fall of 4.63% in the last 24hrs.
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