Solana is currently on the fifth day of consistent price declines. Struggling at $ 167, the bulls’ attempt at staging a comeback is futile as the previous green candle flipped.
The latest trend continues the previous day’s downtrend. It started trading at $176 but experienced a massive increase in selling pressure. As a result, it edged close to $160 but rebounded at $162. It ended the day at $167, which represents an almost 5% drop.
The previous day’s decline was the largest in three days, pointing at other triggers.
Figure Market announced that it purchased 784000 Solana for $102 each, totaling $80 million, in a recent auction of the asset. The purchase took place on May 22, and it implored other stakeholders to participate.
The latest action by the firm shows growing interest and investment in SOL. It also reflects a discount of almost 40% as the coin is trading at $180. Nonetheless, the company failed to provide further details how what it plans to do with the coins it got.
The auction was from FTX’s massive bag. It continues the gradual dump in a bid to pay back its creditors.
Aside from the bearish fundamentals, the coin had some positive news. One such is the possibility of firms filing for its spot ETF. Others speculate that the approval may come in 2025
Uptrends Reversal
The most recent downtrend is in reaction to several factors. In addition to FTX dumping, the charts suggest that the coin is due for corrections.
Solana stopped its range-bound movement on May 1 with a 6% hike. The asset went on to register three consecutive days of gains before it consolidated the hike. It resumed the uptrend on May 15 with an 11% surge.
The most recent resumption sparked a 32% surge that peaked at $188. This climb formed an ascending wedge. The decline is the result of the chart pattern. Nonetheless, it flipped the first pivot resistance during the ascent. How low will it go?
Solana Set for More Decline
Solana lost over 10% in the last five days. This comes after its massive surge on May 20, when it surged from $169 to $188. Nonetheless, during this period, it established a new support at $166, having tested it three times during the period under consideration.
Currently trading close to the highlighted mark, chances of slipping below it increase. The Relative Strength Index is on an almost parallel trend. This means the altcoin is experiencing an equal push from both the bulls and bears. It also indicates that a breakout is oncoming.
In response, the moving average convergence divergence is printing sell signals. The 12-day EMA decline becomes faster in response to price. The metric will intercept the 26-day EMA which indicates an ongoing bearish convergence.
Failure to maintain the $166 support will result in a possible decline to the pivot point at $150. Nonetheless, the Fibonacci retracement levels suggest that the mark may hold. It is in close proximity to the 23% Fib level. If the bulls fail to defend the highlighted mark, the asset will drop as low as the $160 support.
The final layer to the defense against a drop to $150 is the 50-day exponential moving average. Solana will rebound after testing it
