Solana loses $50 after a 5% drop in prices: Buy now?

Solana price analysis for May 21, 2022, ends on a bearish note for the coin as SOL might fall to lower $40s.
Solana price analysis for May 21, 2022, ends on a bearish note for the coin as SOL might fall to lower $40s.

Solana price analysis for May 21, 2022, comes on a bearish note for the coin with increased chances of dropping to lower $40s if the bulls don’t take over the price action soon. Furthermore, in the last 24 hours, we have seen SOL lose 5% of its prices and also lose major price support above the $50 price region. As noted in our SOL price analysis for May 20, SOL found increased buyers’ support below $50 but it doesn’t feel like prices will hold above this region as trading volume has also dropped for the token in the last 24 hours.

The data from CoinMarketCap shows that the trading volume for SOL dropped by 6.38% in the last 24 hours, followed by a 3% drop in the market cap. The Market Dominance of the Solana token dropped to 1.35%, while the Volume / Market Cap Ratio stands at 0.1059.

The daily candle for Solana was initiated at a price of $49.42 and reached a daily high of $49.96. Furthermore, the daily low for SOL was seen at $48.43, while the price of 1 SOL at the time of writing was $49.36. 

Solana price analysis from the daily chart for May 21

Solana price analysis for May 21, 2022, will take into account the data from the daily chart below and 3 major indicators integrated into it.

Solana price analysis
Source: TradingView

The MACD indicator shows that the MACD line is touching the signal line but the bullish divergence on the daily chart is still confirmed.

The RSI indicator reads a value below 34 which means that the selling pressure is still considerably higher than the buying pressure as investors hope for higher prices.

The price action for Solana rests in the lower end of the Bollinger Bands although if buying volume jumps, we might see a retest of the middle zone of the Bands.

Conclusion

Solana price analysis for May 21, 2022, ends on a bearish note for the coin as SOL might fall to lower $40s.

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