Solana price over the last 24 hours was filled with a lot of bearish action. A look at the 1-day chart reveals one of the longest red candles in almost thirty days. This comes as fears of the asset retesting $20 looms.
Breaking the chart down to the 2-hour chart, we noticed that the tenth largest by market cap failed to make any positive moves during the first few hours of the current intraday session which may indicate a scenario of traders taking massive profits after last week’s performance.
One of the most interesting periods was in 08:00 UTC when the asset lost more than 5% in two hours. We noticed that this swing affected indicators as RSI dipped below 30, indicating that the asset was oversold.
After this event, SOL traded in a slim channel for the rest of the day. As a result, we noticed several attempts at the $22 support.
It is worth noting that the said barrier is one of the strongest. As per previous price movement, we noticed that it served as short-term support over the last seven days. We also noticed that this is the first time solana briefly slipped below it.
Solana may Retest $20
Indicators are not favorable at this time. Recall that SOL was overbought a few times during the previous week. We noticed the same reading on Sunday and a weekly outlook pointed out that the coin may experience notable downtrends this intraweek session.
Joining the list of bearish technical metrics is the Moving Average Convergence Divergence. We noticed that the 12-day EMA is gradually approaching the 22-day EMA. In what we describe as a bearish convergence, it signals the start of a period filled with significant downtrends.
Currently trading at $22, we may expect a retest of the $20 support if current trends continue. The Relative Strength Index is also dipping and at 50 at the time of writing.
