Solana Price Prediction as Technicals Hint at a Potential 40% Crash Soon – Is a Downturn Imminent?

cryptonews.com:

The Solana price has risen by 2.5% in the past 24 hours, climbing to $76.91 on a day when the cryptocurrency market as a whole has barely moved.

SOL is now up by 16% in the last seven days and by 29% in the last 30, with the altcoin one of the best-performing top-100 coins in the market right now.

Yet the market’s eagerness for SOL may be about to wane, with the token’s technical indicators forming a bearish divergence in the past few days, suggesting that a big dive may be coming fairly soon.

The issue with SOL’s chart at the moment is that, even though it has recorded a gain in the past 24 hours, it has also produced a ‘bearish divergence’ as a result of its relative strength index (purple).

That is, its RSI has remained relatively weak in the past week or so, dropping from above 70 to 60 yesterday, a decline which undercuts today’s price rise.

At the same time, SOL’s trading volume remains subdued in comparison to the high levels it recorded in early December, when it topped $4 billion.

Now its volume sits at around $2 billion, which is still healthy enough, but which may continue to decline in the next few weeks.

That a decline may be coming soon is also arguably signalled by SOL’s 30-day moving average (yellow), which has been well above its 200-day (blue) for several weeks.

In other words, it’s arguable that the market has overbought SOL, and that the latter needs to correct a little before it can return to growth.

Having said that, it may not be too long before SOL rallies again, given that analysts are generally expecting a bull rally to occur in the next few weeks.