Technical Analysis for SOLUSD for 19th May 2022
Solana Bulls Face Strong Resistance, SOL Support at $40
Past Performance of SOL
SOL prices are currently down 64 percent from April 2022 peaks and in red in the past trading day. Sellers have the upper hand, reading from the technical candlestick arrangement in the daily chart. Buyers have not been able to maintain the upside momentum to clear $60 and $70. These are immediate resistance levels marking highs of defining bear candlesticks.
Solana Technical Analysis
From the daily chart, Solana prices are within the May 11 and 12 bear candlesticks. Besides, the leg up from late last week has relatively low trading volumes. Therefore, sellers have the upper hand from an effort versus results perspective. However, last week's conspicuous bear candlesticks could turn climactic if prices burst above $70, reversing the losses of May 11. In that case, risk-off traders may search for entries on any cool-off, targeting March 2022 lows of around $78. If not, further price dumps below $40 could see SOL more than halve to $22.
What to Expect from SOL
Solana buyers face strong headwinds reading from candlestick formation in the daily chart. The failure of buyers to build on the end of last week's gains and clear $60 suggests weakness. Therefore, while bulls are confident, there should be comprehensive breaks above immediate liquidation lines for SOL to turn the corner.
Resistance level to watch: $60
Support level to watch: $40
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