Solana Technical Analysis: Development Activity Rising High, Will it Impact the SOL Price Ahead?

Key Takeaways:

• The Solana(SOL) price closed the previous day’s trade at $35.68 with a market capitalization of $12.46 billion and a circulating supply of 349.25 million
• The SOL price is currently plateauing between $34.5 & $36.8 regions experiencing almost equal pressure from both the sides
• A breakout from here may rise the price by 24% while a breakdown may lead a price drop below $30

Solana Technical Analysis for August 2022

The Solana price in the recent times has been stagnant, after dropping hard in the recent past. The start of the month was incremental which was ignited from the time when the SOL price hit the lows during mid-June. However, the rising channel was broken and presently Solana is displaying huge possibilities of a price drain. 

While the monthly close in on the toes, one can expect a decent rise in the volatility that may drag the price out of the current consolidation. However, the possibility of a price breakdown appears to be pretty high but for a short period. By the end of the monthly trade, the SOL price could drop slightly to hit $32 and rebound to close the trade above $36 to $38.

Technical Analysis at a Glance

Technical Indicators & Pivot Levels

Pivot Levels

The top cryptos are extremely uncertain now and hence the SOL price is also flashing bearish signals in all the time frames. The RSI, MACD, etc are bearish in both short-term as well as long-term. Also, the bears are expected to dominate for a longer time as Bull-Bear power is also in favor of them. 

Conversely, ADX is positive in the short term which denotes coiling strength within the rally which may offer an interim bounce. However, the long term forecast is bearish. Therefore, the technicals suggest a notable drop could be fast approaching.

Additional Read: Solana Price Prediction

ON CHAIN METRICS Analysis

• The volatility of the SOL price has been slashed down drastically. The rate had spiked heavily during the May crash, which has dropped below 1.

Source: Messari.io

• Despite the price variation, the Solana platform’s development activity has risen significantly over the past couple of months.

Source: Santiment

Solana (SOL) Technical Analysis for Short Term

Source: Tradingview

• The SOL price has dropped below the crucial 50-day MA in both the time frames and hence indicating extreme bearish pressure
• The Bollinger Bands are closer to get squeezed as they are now going parallel to each other
• On the other hand, the price is test the lower band and hence if the bands are released are extensive squeeze, chances of a short-term bounce emerge.
• However, the SOL price may continue trading below $40 unless it receives any bullish action.

Solana (SOL) Technical Analysis for Long-Term

Source: Tradingview

• The SOL price broken down from the rising parallel channel during the past weekend and is heavily consolidating at these levels since then
• Woefully, a larger drop is expected as the price has formed a bearish flag that may breakout anytime from now
• Therefore, the SOL price could revisit the June lows at $27 or slightly drop beyond these levels to attract the liquidity
• Further a strong rebound may assist the asset to regain the lost levels and head to test the upper targets close to $50 initially

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