Solana drops below $40 after a 2% price dump: Key levels to watch

Solana price analysis for July 18, 2022, comes on a bearish note for the token as we can see that SOL has failed to maintain prices above the $40 price region and has dropped by more than 2% in the last 24 hours. Furthermore, it is important to note that the chances of SOL making higher highs in the coming days are not very considerable until the resistance at $40 is turned into a support level. To do that, the bulls need to push towards the $40 resistance once again and aim for the $50 level. However, the current volume is too low for that.

As noted in our SOL price analysis for July 17, 2022, the nearest support for the Solana token stands at $30 which has been maintained so far despite the market remaining bearish overall.

The data from CoinMarketCap shows that the trading volume for SOL dropped by 3.00% in the last 24 hours, followed by a 2.43% drop in the market cap. The Market Dominance of the Solana token dropped to 1.40%, while the Volume / Market Cap Ratio stands at 0.08281.

The daily candle for Solana was initiated at a price of $38.61 and reached a daily high of $39. Furthermore, the daily low for SOL was seen at $38.55, while the price of 1 SOL at the time of writing was $39.

Solana price analysis from the daily chart for July 18

Solana price analysis for July 18, 2022, will take into account the data from the daily chart below and three major indicators integrated into it.

The MACD line and the signal line are nearly overlapping but the MACD histogram remains bullish.

The RSI indicator for Solana reads a value below 55 which means that bulls are overall in control of the price action.

The price action for Solana is retesting the upper end of the bullish zone of the Bollinger Bands and a bullish breakout might follow.