The recent slump in value can be attributed to a sudden increase in trading volume, which rose by 15.41% from the previous day. Such an increased volume indicates that many sellers want to sell their coins because of what is happening on the market as a measure of taking profit.
Moreover, there was some kind of indecisiveness around $169, suggesting a temporary exhaustion of bulls. These patterns often result in retracements as they tend to make traders reflect on market dynamics.
Technical Indicators: Analyzing Solana’s Price Movements
Technical indicators provide more insights into how Solana moved its prices. The orange line represents a 30-day moving average and recently broke below the blue one (200-day moving average), which shows the intensity of the downtrend.
Concurrently, the Relative Strength Index (RSI) for SOL to 30 signaling that the asset is oversold, which might mean that either way, this asset is likely poised for recovery.
