SOL Price Analysis – Bearish Signals – 19 June 2023

Introduction

This report supplies an evaluation of the cryptocurrency Solana (SOL) based mostly on the newest knowledge as of 19 June 2023. The evaluation features a assessment of the present value, quantity, bid/ask costs, day’s vary, technical indicators, and transferring averages. Solana has seen some fascinating actions just lately, and this report goals to offer insights into its potential future efficiency.

Worth and Quantity Overview

As of 03:37 a.m. UTC on 19 June 2023, on Binance, Solana (SOL) is buying and selling at $15.450, down by $0.140 (-0.90%) from the earlier shut. The amount stands at 1,577,846 SOL. The bid and ask costs are $15.440 and $15.450, respectively. The day’s vary has been between $15.280 and $15.840.

Technical Indicators

Technical indicators are statistical instruments utilized by merchants and buyers to foretell future value actions and market developments. Right here’s an in depth breakdown of the technical indicators for Solana (SOL):

• RSI(14): The 14-day Relative Energy Index is 41.505, indicating a promote place. This means that the worth momentum is leaning in direction of the sellers. The RSI is a momentum oscillator that measures the pace and alter of value actions on a scale of 0 to 100. Historically, the asset is taken into account overbought when the RSI is above 70 and oversold when it’s under 30.
• STOCH(9,6): The Stochastic Oscillator is 38.375, indicating a promote place. This means that the worth momentum is leaning in direction of the sellers. The Stochastic Oscillator is a momentum indicator that makes use of help and resistance ranges. The time period “stochastic” refers back to the level of a present value in relation to its value vary over a time period.
• STOCHRSI(14): The Stochastic RSI is 20.547, indicating an oversold situation. This means that the worth may be in a downward momentum. The Stochastic RSI is an oscillator that measures the extent of the RSI relative to its high-low vary over a set time interval.
• MACD(12,26): The Transferring Common Convergence Divergence is -0.062, indicating a promote place. This means that the short-term momentum is leaning towards the sellers. The MACD is a trend-following momentum indicator that exhibits the connection between two transferring averages of a safety’s value.
• ADX(14): The Common Directional Index is 27.621, indicating a promote place. This means that the worth may be in a downward momentum. The ADX is used to measure the energy or weak point of a development, not the precise path.
• Williams %R: The Williams %R is -81.250, indicating an oversold situation. This means that the market is in a bearish situation. The Williams %R is a momentum indicator that measures overbought and oversold ranges.
• CCI(14): The Commodity Channel Index is -66.9311, indicating a promote place. This means that the worth is at the moment under its common value and thus, in a bearish situation. The CCI is a momentum-based oscillator used to assist decide when an funding car is reaching a situation of being overbought or oversold.
• ATR(14): The Common True Vary is 0.1079, indicating much less volatility. This means that the worth is just not making massive actions, which might imply the worth modifications may be gradual. The ATR is a technical evaluation indicator that measures market volatility by decomposing your complete vary of an asset value for that interval.
• Highs/Lows(14): The worth is -0.0321, indicating a promote place. This means that the worth may be in a downward momentum. This indicator is used to establish the very best and lowest costs for the asset over a specific interval.
• Final Oscillator: The worth is 40.749, indicating a promote place. This means that the worth momentum is leaning towards the sellers. The Final Oscillator is a technical indicator used to measure momentum throughout a number of timeframes.
• ROC: The Fee of Change is -2.093, indicating a promote place. This means that the worth may be in a downward momentum. The ROC is a momentum oscillator, which measures the share change between the present value and the n-period previous value.
• Bull/Bear Energy(13): The worth is -0.1040, indicating a promote place. This means that the worth momentum is leaning towards the sellers. The Bull Energy measures the capability of patrons to drive costs above the typical consensus of worth. The Bear Energy, alternatively, measures the capability of sellers to drive costs under the typical consensus of worth.

Here’s a abstract of the technical indicators in desk kind:

The technical indicators abstract exhibits zero purchase alerts, 9 promote alerts, and nil impartial alerts, resulting in a abstract motion of “STRONG SELL”.

Transferring Averages

Transferring averages are a kind of knowledge smoothing approach that analysts use in technical evaluation to establish developments in a set of knowledge, similar to inventory costs. They assist to cut back the noise and fluctuation in value knowledge to current a smoother line, making it simpler to see the general path or development.

There are a number of varieties of transferring averages, however two of the most typical ones are the Easy Transferring Common (SMA) and the Exponential Transferring Common (EMA).

1. Easy Transferring Common (SMA): The SMA is calculated by including the costs for a sure variety of intervals after which dividing by that variety of intervals. For instance, a 5-day SMA would add the closing costs for the final 5 days after which divide by 5. The SMA offers equal weight to all the information factors in its calculation.
2. Exponential Transferring Common (EMA): The EMA is just like the SMA however offers extra weight to current knowledge. This implies it responds extra shortly to current value modifications than the SMA. The calculation of the EMA is a little more complicated than the SMA, involving an exponential smoothing issue to provide extra weight to current costs.

The importance of various interval transferring averages (like 5-day, 10-day, 20-day, 50-day, 100-day, and 200-day) lies within the timeframe that merchants are thinking about:

• 5-day, 10-day, and 20-day transferring averages are sometimes used for short-term developments. They reply shortly to cost modifications and are helpful for merchants seeking to reap the benefits of short-term value actions.
• 50-day and 100-day transferring averages are extra medium-term. They’re much less delicate to day by day value fluctuations and supply a clearer image of the medium-term development.
• 200-day transferring common is a long-term development indicator. It’s much less delicate to day by day value fluctuations and supplies a clearer image of the long-term development. Many merchants take into account a market to be in a long-term uptrend when the worth is above the 200-day transferring common and in a long-term downtrend when it’s under.

It’s essential to notice that transferring averages are lagging indicators, which means they’re based mostly on previous costs. They might help establish a development however received’t predict future value actions.

Right here’s an in depth breakdown of the transferring averages for Solana (SOL):

• MA5: The 5-day SMA is 15.468, and the 5-day EMA is 15.462, indicating a promote place. This means the worth is under the typical of the previous 5 days.
• MA10: The ten-day SMA is 15.471, and the 10-day EMA is 15.502, indicating a promote place. This means the worth is under the typical of the previous ten days.
• MA20: The 20-day SMA is 15.578, and the 20-day EMA is 15.538, indicating a promote place. This means the worth is under the typical of the previous 20 days.
• MA50: The 50-day SMA is 15.646, and the 50-day EMA is 15.499, indicating a promote place. This means the worth is under the typical of the previous 50 days.
• MA100: The 100-day SMA is 15.274, indicating a purchase place and the 100-day EMA is 15.417, indicating a purchase place. This means the worth is above the typical of the previous 100 days.
• MA200: The 200-day SMA is 15.249, indicating a purchase place and the 200-day EMA is 15.892, indicating a promote place. This means the worth is across the common of the previous 200 days.

Here’s a abstract of the transferring averages in desk kind:

The transferring averages abstract exhibits three purchase alerts and 9 promote alerts, resulting in a abstract motion of “SELL”.

Conclusion

The market situations for Solana (SOL) as of 19 June 2023 are predominantly bearish. Each the technical indicators and the transferring averages lean in direction of a “promote” motion, indicating a possible downward motion within the value of SOL.

The much less volatility indicated by the ATR(14) means that the worth modifications may be gradual, however the promote alerts from the RSI(14), STOCH(9,6), MACD(12,26), Williams %R, ROC, and Bull/Bear Energy(13) point out that the worth momentum is leaning in direction of the sellers. The oversold situation indicated by the STOCHRSI(14) means that the asset is at the moment being closely bought, which might result in a possible value correction sooner or later.

In conclusion, whereas the market situations are at the moment bearish, merchants and buyers ought to nonetheless train warning. The promote alerts from the technical indicators and transferring averages counsel that there may be some value corrections within the brief time period. Moreover, the much less volatility indicated by the ATR(14) means that any value modifications may be gradual.

As at all times, whereas technical evaluation instruments can present helpful insights, they don’t seem to be a assure of future efficiency, and all buying and selling methods ought to be used along with different market data and particular person analysis.

Featured Picture Credit score: Photo / illustration by “Dylan Calluy” through Unsplash