Solana price analysis: SOL below $90, drops 6% in 24 hours

Solana price analysis for Jan 27, 2022, shows a very sluggish scenario for SOL as the seventh biggest cryptocurrency in the crypto market by market cap dumped below $90. As compared to the ATH witnessed in early Nov 2021, SOL is off by 65.55%.

The data from CoinMarketCap shows that Solana is making its way towards $85 with a 4.89% drop in the market cap and a 20.41% surge in trading volume. Furthermore, this data indicates that the selling volume for SOL might surge soon. We can expect prices to dip halfway below $90, and a situation last witnessed in the Solana price analysis for Jan 25, 2022.

The daily candle for Solana began at a price of $92.11 and reached a daily high of $93.65. Moreover, the daily low for SOL stands at 85.71, with a 2.7% overall since the start of the day.

Solana price analysis on the daily chart

The Solana price analysis on the daily chart shows that the 50-day and 100-day Moving Averages continue above the price action and acts as resistance zones.

These resistance levels need to be reclaimed to confirm an uptrend. It is to be noted that this is a very bearish scenario as compared to our Solana price analysis from September 2021, when the token was at $170.

Moreover, the MACD indicator is bearish, with the MACD line (blue) moving below the signal line (orange).

Source: TradingView

The RSI levels show that the token is being oversold, and if the situation persists, we can see SOL reach as low as $85 and drop to $80. The token has been oversold for almost 5 days, first noticed in our Solana price analysis of Jan 23.

Source: TradingView

Conclusion

To conclude, the SOL price analysis for Jan 27, 2022, shows that SOL might fall further as Bitcoin fell nearly 5% in the last 24-hours, and a similar bearish pattern is being followed by Ethereum which is below $2.4K.