Solana drops to $44: Drops to 8th position in the crypto space

Solana price analysis for May 12, 2022, comes on a bearish note for the SOL token with increased chances of losing the $40 price region in the short term. In the last 24 hours, we have seen a price drop of more than 33% for the coin and it seems the downtrend will continue in the near future. As TheCoinRise noted in our SOL price analysis for May 11, 2022, SOL tried hard to maintain price action above the $65 price region but failed to do so eventually leading to a huge crash. At the time of writing, the price of 1 SOL is almost 83% lower than the all-time high.

The data from CoinMarketCap shows that the trading volume for SOL surged by 55.25% in the last 24 hours, followed by a 32.44% drop in the market cap. The Market Dominance of the Solana token dropped to 1.25%, while the Volume / Market Cap Ratio stands at 0.3204.

The daily candle for Solana was initiated at a price of $50.9 and reached a daily high of $54.29. Furthermore, the daily low for SOL was seen at $42.42, while the price of 1 SOL at the time of writing was $46. 

Solana price analysis from the daily chart for May 12

Solana price analysis for May 12, 2022, will take into account the data from the daily chart below and 3 major indicators integrated into it. 

Source: TradingView

The RSI indicator reads a value below 23 which means that the SOL coin has officially entered the oversold region and the downtrend continues.

The MACD indicator shows that the MACD line remains below the signal line as the MACD histogram is filled with red bars. The selling pressure is significantly high in the market.

The price action for Solana continues to break out from the bearish zone of the Bollinger Bands and the downtrend for SOL strengthens.

Conclusion