Solana is back above $35: A perfect definition of dead cat bounce?
Solana price analysis for July 5, 2022, comes on a bullish note for the SOL token as it has finally broken above the $35 price region once again. However, the Twitter community remains divided on the fact whether a trend reversal is coming or the market is just playing games with traders.
On the other hand, investors are advised noted to trade SOL in the current condition of the market as there are considerable chances of another price crash and the current price surge might be a dead cat bounce. As such, we can confirm that the token has a strong resistance beyond the $40 price level while the nearest strong support for the token stands at $30, as stated in our SOL price analysis for July 5, 2022.
The data from CoinMarketCap shows that the trading volume for SOL surged by 115.70% in the last 24 hours, followed by a 9.46% surge in the market cap. The Market Dominance of the Solana token rose to 1.35%, while the Volume / Market Cap Ratio stands at 0.09979.
The daily candle for Solana was initiated at a price of $36.71 and reached a daily high of $36.99. Furthermore, the daily low for SOL was seen at $35.17, while the price of 1 SOL at the time of writing was $36.
Solana price analysis from the daily chart for July 5
Solana price analysis for July 5, 2022, will take into account the data from the daily chart below and 3 major indicators integrated into it.
Source: TradingView
The MACD indicator shows that the MACD line is very close to the signal line and the chances of a bearish divergence are still high.
The RSI indicator for Solana reads a value below 48 which confirms that the Solana bulls aim to dominate the price action.
The price action for Solana is retesting the middle zone of the Bollinger Bands as attempts for trend reversal continue.
Conclusion
Solana price analysis for July 5, 2022, ends on a bullish note for SOL but this price surge could be a dead cat bounce.
