- Solana price fades the previous day’s rebound from 50-day EMA, paring the biggest daily jump in over a week.
- Steady RSI, sluggish MACD signals suggest continuation of short-term pullback in SOL price.
- Convergence of 100-day EMA, two-month support line appears strong short-term support within broad bullish channel.
- Solana stays on the way to reversing yearly loss despite latest retreat.
Solana (SOL) price declines over 1.0% to $185.00 ahead of Thursday’s U.S. trading session, consolidating the biggest daily gain in a week.
The altcoin reverses the previous day’s rebound from the 50-day Exponential Moving Average (EMA) as market sentiment turns cautious ahead of the annual global central bankers’ meeting at Jackson Hole.
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The SOL’s pullback is supported by a week-high trading volume of approximately $6.65 billion, according to Santiment, while its market capitalization eases to $99.75 billion. It’s worth noting that the latest network updates surrounding Solana might have contributed to a jump in the daily trading volume.
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Additionally, steady conditions of the 14-day Relative Strength Index (RSI) and sluggish Moving Average Convergence Divergence (MACD) signals suggest a continuation of the short-term weakness in the SOL price.
However, the quote’s sustained trading above the key SMAs and an upward-sloping bullish trend channel since April defends the hopes of witnessing a gradual reversal of the yearly loss, currently around 2.33%.
Solana Price: Daily Chart Keeps Bullish Bias Intact
Even if the steady RSI and sluggish MACD signals suggest short-term weakness in the SOL, a slew of strong downside supports and the ecosystem’s fundamental strength continue to favor the bulls.
Among the key supports, the 50-day EMA of $175.00 gains immediate attention of the sellers, before a convergence of the 100-day EMA and a two-month ascending trend line, close to $168.00.
Below that, the aforementioned bullish channel’s bottom surrounding the $150.00 psychological magnet will play a crucial role in defending the buyers; if not, then the following downside can target June’s low near $126.00 and the $100.00 psychological magnet before approaching the yearly low of $95.00.
On the flip side, a broad horizontal area from February, around $205.00-$210.00, appears to be a tough nut to crack for the SOL buyers during fresh upside moves. That said, the $200.00 round figure may guard the quote’s immediate rise.
If Solana remains firmer past $210.00, the multi-month bullish channel’s upper boundary of $215.00 and early January swing high near $223.00 will act as the final defense of the sellers; breaking these resistance levels will open the way toward the yearly peak of $295.00 for bulls.
Solana Price: Four-Hour Chart Points To Pullback
On the four-hour chart, Solana fades and bounces off the 200-bar EMA support, currently around $178.00.
With the RSI line near 50.00 and the soft MACD signals, the quote could bounce off the EMA support; failing to do so will shift the market’s attention to an ascending support line from June, near $170.00.
In a case where the SOL bears dominate past $170.00, the daily chart levels will be in the spotlight.
Conversely, $200.00 round figure appears to be an immediate target for the Solana buyers to watch during a fresh upside. Following that, a month-long resistance line near $212.00 and higher levels discussed on the daily chart will gain the market’s attention.
Conclusion
Despite the recent pullback in Solana prices amid market consolidation ahead of key events, strong ecosystem optimism, a multi-month bullish trend channel, and multiple downside supports keep bears at bay. This suggests the SOL’s overall gradual recovery from the yearly loss remains intact.
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