Key technical indicators show a also as the daily RSI is currently at 29 indicating oversold conditions. This extreme reading often shows a potential bounce to recovery in the short term before we get a clear direction. The weekly RSI is at 47 showing increased bearish momentum but not yet in oversold territory.
The MACD line also shifted below the signal line reflecting bearish market sentiment.
Traders Take
Current price action is testing the neckline support of the double-top pattern. A break below this level could see SOL drop towards the $100 mark. On the other side a bounce from this support and a higher timeframe bullish reversal confirmation signal might target the $200 level.
Looking at the 24-hour trading volume it stands at $1.9 billion ranking 6th among all crypto and showing over 161% increase showing the bulls momentum at the current key support that might fule a recovery signal.
