Solana Fake Break Out! SOL Price Poised to Plunge to $70 With DeathCross Ahead

The post Solana Fake Break Out! SOL Price Poised to Plunge to $70 With DeathCross Ahead appeared first on Coinpedia - Fintech & Cryptocurreny News Media| Crypto Guide

The SOL/USD price has significantly increased today; on February 1, 2022, the price rose from $99 to $106 while maintaining this momentum as it continues to grow in value. SOL price surge after Coinbase listed two tokens (ORCA and FIDA)  of the Solana ecosystem. 

Solana Price has been up 17.42% in the last 24 hours, with a trading volume of $2,381,149,299. It currently ranks at #7 with a live market cap of $$33,325,833,638.

Relative Strength Index (RSI) readings, however, reached overbought levels of over 70, indicating a brief correction could soon occur. The 100 EMA, 200 EMA, and other leading technical indicators momentum and Stochastics RSI reveal some bearish pressure in the market too.

As per the above chart, the 50-day exponential moving average will close below its 200-day EMA indicating a bearish crossover, called a death cross. This Event Could drag the SOL Price too much lower levels.

Where is SOL Price headed?

Based on SOL’s slide from $204.75 to $130, the drop of SOL on the charts has temporarily stalled at the 61.8 percent extension level.

On lower time frames, the candle wicks to $106.1 show a set of local highs that SOL would have to break through to change the market structure. However, the 27.2 percent extension level at $109.67, which corresponded with a demand area, is above the level.

Because prices usually seek liquidity, it was feasible that SOL might test this $110 level and trick some market participants into buying, before retreating back to the $70 level in quest of demand.

After a period of sideways trading at the $90 mark, the price could move higher or sink toward the $70-$78 area as the death cross is on the horizon.

In either scenario, Solana appeared to be in for another leg down. The recent hawkish Fed statements, along with heavy selling pressure in stocks and Bitcoin, meant that market circumstances were not conducive to bulls.