Solana made history on September 9 as rose to a new all-time high. As of the time of writing, SOL ATH is $216. Following the ATH, the coin was bearish as it dipped as low as $177 the same day but surge to close the day at $187; that was the start of the bearish dominance. The bulls are yet to reply to the taunt as the SOL/USD pair is heading for its sixth consecutive day of red candles.
The coin has lost more than 15% during this time and is trading 22% lower than its all-time high. Some traders are hopeful of a retest of the ATH. Indicators are painting different pictures from the buyers’ expectations.
The Moving Average Convergence Divergence (MACD) both lines have converged to give off a bearish signal. The image below shows the blue line intercepts the orange which has not been seen on the daily chart since July. The near interception we see on the chart was on August 26 but was averted as the buying pressure increased.
The Relative Strength Index is also taking a dip as selling pressure increases. Solana has been overbought since August 26 following a brief dip to the neutral level.
The Good News
This is not the first time RSI is dipping. It did, some days back but was fired up. We may see a repeat of that event. Chart pattern strongly agrees with the claim of a reversal in trend as there is a bearish flag on the chart as of the time of writing. If this happens, we may see Solana surge as high as $250.
There is no doubt there is a lot of positivity for SOL as reports have it that Solana investment products saw inflows of $49.4 million between Sept. 6 and Sept.10. According to Coinshare, the combined total inflows for crypto investment products is estimated at $57 million for the week. This increase shows that the demand for the coin is more than before and this may trigger another bullish run.
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