Solana has been under pressure to go down since hitting a weekly high near $60 and a return to the lows of 2022 booms
Solana (SOL) Price Is Likely To Return Crash
Even though SOL is down 15% from its high for the week, it is still up nearly 34% from the new lows for 2022 that were set during last week’s flash crash.
But the way prices are moving right now shows that a return to the lows of 2022 is becoming more likely.
SOL Is Positioned To Fall Back To $30
On the daily chart, the price of Solana is in a very dangerous spot. It is just above the daily Tenkan-Sen right now.
Since April 6, 2022, the Tenkan-Sen has been the main level of resistance for SOL, and bulls haven’t been able to make any significant or long-lasting moves above it.
If the price of Solana closes below $48 at the end of the day, it will be below the current high-volume node.
This will likely cause a fast sell-off until the next high-volume node. The next high-volume node doesn’t show up until $33, which is where the 2021 Volume Point of Control is.
Good Thing For Bears?
For bears, it’s a good thing that buyers would have to do a lot of hard work to get rid of any more short-term threats.
Even if bulls could get the price of Solana to close above the Kijun-Sen at $70, they would still be stuck with the high volume node and the 2022 Volume Point of Control between $87 and $100.
A Kumo Twist is the only thing that looks bullish in the short term. When Senkou Span A crosses Senkou Span B, this is called a “Kumo Twist” (the Cloud changes color).
If an instrument moves in a trend toward a Kumo Twist, it is likely that the trend will be corrected.