Solana Price Prediction as SOL Drops 4% Overnight – What’s Going On?

cryptonews.com:

SOL has declined by 4% in the past 24 hours, with the Solana price faltering to $186.82 as the wider cryptocurrency market falls by 1.5% today.

The altcoin has been strong enough in recent weeks to hold onto a 9% gain in a week and an 84% increase in the last 30 days, while also rising by 800% in a year.

This means that last night’s modest fall amounts mostly to holders taking some profits, with the overall picture for SOL remaining largely positive.

It should therefore return to strong growth once the market as a whole picks up again, which it could do very soon.

What’s encouraging about Solana’s chart is that it’s reaching a position where a rebound should arrive soon.

For instance, its relative strength index (purple) has bounced a little today after dropping to 35 earlier this morning, so it does seem as though it has bottomed out.

Having said that, SOL’s 30-day moving average (yellow) continues to slide towards its 200-day (blue), with it being possible that the coin may not return to growth until the 30-day has fallen further.

What’s interesting is the altcoin’s resistance (red) and support (green) levels are converging towards each other, implying that a breakout (or big drop down) is not too far away.

We have also seen a couple of very large ($100 million+) transfers of SOL in the past day or so, although it’s not clear whether the parties involved are preparing to sell or accumulate.