- Solana price shows rejection off the 8-day EMA at $38.51, indicating that a retracement is likely.
- Investors should note that this downtrend could knock SOL down by 15% to $31.66.
- A four-hour candlestick close that flips the 8-day EMA at $38.51 into a support floor will invalidate the bearish thesis
Solana price has been rather volatile after the crash within the first 1/2 of June 2022. As a result, SOL has seen large restoration rallies that pushed it better. However, the soar appears to be dealing with a hurdle that is subduing it and preventing it from moving better.
Solana fee equipped for a U-flip
Solana fee rallied kind of 60% among June 18 and June 24 to set a swing high at $42.89. While this flow became superb, it confronted a problem and its upside was capped because of the presence of the 8-day Exponential Moving Average (EMA).
This rejection knocked SOL rate down by way of 28% to brush under the $31.66 guide stage. While bulls recuperated and cause every other 28% leg-up, this rally also faces the eight-day EMA once more at $38.51.
If this trend continues a rejection should imply that Solana price may revisit the $31.66 assist floor.
As lengthy as SOL remains above the aforementioned platform, there is usually a hazard for a comeback. However, a breakdown of this degree ought to lead to a 22% crash to $24.52.
While matters are looking gloomy for Solana rate, the downswing is happening because of the rejection on the 8-day EMA at $38.Fifty one. However, if the bullish momentum continues to rise, there is a great chance SOL may want to produce a 4-hour candlestick near above $38.51 and turn the 8-day EMA right into a assist floor.
Such a improvement will invalidate the bearish thesis for Solana charge and probably cause a run-up to $47.43.