Solana: What investors need to be wary of in case of a decline hereon

ambcrypto.com:

Solana’s (SOL) recovery has been in line with most altcoins in the market that rallied after Bitcoin’s revival from $37,700. While the sellers initiated a sell-off from the $136-mark, SOL saw an up-channel breakout.  

A closer look at its daily chart revealed the possibility of further retracements. Should the 20 EMA (red) continue to plunge, SOL could enter into a squeeze phase in the $99-$105 range. At the time of writing, the alt traded at $102.1075, down by 7.9% in the last 24 hours.

Source: TradingView, SOL/USD

The previous bearish phase saw a monstrous 71% retracement from its lifetime high. During this phase, SOL depreciated in a descending channel (white). But the bulls were visibly keen on upholding the six-month horizontal support at the $85-mark. 

This resulted in a bullish comeback rally in which the Supertrend entered the green zone for the first time in four months. Consequently, the token gained over 83% between 14 March and 3 April. As observed in the volume range, the $136-mark offered high liquidity and resistance to the bull run.

While falling from the up-channel, the 20 EMA looked south while the Supertrend turned red. This trajectory hinted at a bearish edge that could lead to further retracements towards the $100-mark. Since that level offers strong liquidity, the buyers could step in and attempt to turn the tide in their favor.

Source: TradingView, SOL/USD

The RSI reaffirmed the overall bearish narrative as it lost the vital mid-line support. A continued southbound movement would only add fuel to its existent bearish fire.

Also, the Aroon up (yellow) still looked south towards the zero-mark. On its way down, it could propel further pullbacks on the price chart. 

Conclusion

Considering the recent change in