Solana price analysis: SOL being oversold, dips below $90

The Solana price analysis for Jan 25, 2022 is not quite optimistic as the token witnessed a 2% drop in the last 24-hours of the market

The Solana price analysis for Jan 25, 2022, is not quite optimistic as the token witnessed a 2% drop in the last 24-hours of the market. It seems that investors are selling their holdings out of panic as Bitcoin remains below $37.5K

The data from CoinMarketCap shows that the SOL token currently holds the 8th position in the market after recently dropping to the 7th position, as covered by TheCoinRise. The trading volume of the SOL token rose by nearly 65.73%, while the market cap dropped by 2.10%.

The daily candle for Jan 25 started the day at a price of $91.94, reaching a daily high of $92.03 and thereafter falling to the daily low at $87.88. The current price of the token, at the time of writing, is at $89.9. It seems that lower prices are definitely possible. 

Solana price analysis on the daily chart

The Solana price analysis on the daily chart below suggests a very bearish trajectory being followed by SOL as it aims to retest lower support levels. Furthermore, the 50-day and 100-day Moving Averages continue above the price action, a condition that is not very promising for SOL traders. 

On the other hand, the MACD indicator shows that the SOL token witnessed a bearish divergence recently as the MACD line (blue) broke below the signal line (orange). The MACD histogram also turned red.

Source: TradingView

Moreover, the RSI indicator shows that the SOL token continues to be oversold. This is a similar situation for Bitcoin, as reported by TheCoinRise.

Solana price analysis
Source: TradingView

Conclusion

The Solana price analysis can be concluded on a bearish note for the day. The token has been bearish for a number of weeks, and despite reclaiming $100, which was covered by TheCoinRise, the SOL token succumbed to the selling pressure.

The selling volumes for SOL have been high for Jan 2022, which was also noted previously by TheCoinRise. The case of lower prices definitely hangs above the price action.