Solana Price Caught In Consolidation, Unable To Break Past The $40 Level
Solana price has been trading laterally as the altcoin has not been able to move past the $40 price mark. The altcoin has experienced a blow recently as thousands of wallets were drained of their assets owing to an exploit. The latest exploit had allowed hackers to drain the funds using private keys.
After the attack on the network, Solana’s value swiftly dropped to $38. Solana price has now been stuck at the $40 level.
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The current support level for the coin stood at $40 and failing to stay on the aforementioned price mark, SOL could fall to $36. Bitcoin too has been consolidating at the $23,000 level after the king coin fell minorly on its chart over the past two days. Altcoins also have been affected in a similar manner.
In case of Solana, the buying strength of the coin fell owing to the recent fiasco. Fortunately, only a certain number of wallets were affected and Solana Network was not compromised. The global cryptocurrency market cap today was at $1.14 Trillion, a 0.4% negative change in the last 24 hours.
Solana Price Analysis: Four Hour Chart
Solana was priced at $40.2 on the four hour chart | Source: SOLUSD on TradingView
SOL was exchanging hands at $40.2 at the time of writing. The coin has still not recovered from the correction it experienced after it moved past the $46 price mark.
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The recent loss of funds from some accounts have definitely set back Solana’s recovery.
Overhead resistance for the coin was at $41, however, Solana price will be able to invalidate the bearish thesis, once it manages to revisit and hold its price above the $46 price mark.
On the flipside, support level for Solana price was at $36. A fall from $36, will bring the asset down to $34. Volume of Solana traded over the last session dipped slightly indicating fall in selling strength.
If Solana price continues on a downtrend, then soon the altcoin will trade below the ascending triangle confirming bearishness.
Solana displayed rise in buying strength on the four hour chart | Source: SOLUSD on TradingView
The altcoin registered a depreciation in buying pressure as Solana holders ran to sell the coin due to . Over the attack. The last few trading sessions however, the coin displayed an increase in buying strength.
The Relative Strength Index was seen moving above the half-line which meant that buyers were overpowering sellers at the time of writing.
Solana price also was seen above the 20-SMA line which meant that buyers were driving the price momentum in the market.
This could be bullish price action for the coin. If buyers hold their position in the market, SOL could break its consolidation soon.
Related Reading: Solana Hot Wallets Suffer Ongoing Attack, Roughly $5M Stolen Thus Far
Solana demonstrated buy signal on the four hour chart | Source: SOLUSD on TradingView
SOL’s technical outlook hinted towards bullishness on the chart. Moving Average Convergence Divergence indicated the price momentum and change in the trend. MACD flashed green histograms after a bullish crossover.
This reading was tied to buy signal for Solana. Bollinger Bands depict price volatility and price fluctuation. The bands were wide and parallel which meant that Solana price will not witness a sharp volatility.
Related Reading: TA: Solana Struggles To Break Key Resistance After $5M Hack
Featured image from US News Money, Charts from TradingView.com
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