Solana (SOL) Price Analysis Shows it may be moving towards Bearish Trend

The running year started off on a perfect note for Solana (SOL). Among the majority of the major cryptocurrency assets, it is Solana that hit it off to a great start right in the beginning of 2021.

Looking at the YTD performance of Solana, it is obvious how much the digital has grown since the beginning of 2021. To the utmost surprise of the entire cryptocurrency and the majority of the top crypto-investors, SOL grew by 10464.43% since the start of 2021.

Solana started its year at a price of around $1.5 per SOL and went on to hit its all-time high of $260.06 per SOL on November 6, 2021. After hitting an all-time high, the price of SOL has moved in a downward direction. As of now, the cryptocurrency community investing in SOL is worried because of the downtrend of the fifth-largest cryptocurrency.

The data surrounding SOL shows that it was on the 3rd of December when the price of SOL came crashing down from $239.12 per SOL to $211.22 per SOL. According to the performance, following the dive from the $239.12 per SOL figure, its price re-entered the triangle.

The dip turned out to be really concerning for the entire SOL-bull community. Solana had started its month of December with a price revolving around the $239.12 figure. The trend was experienced all through the 1st, 2nd, and midday of 3rd until it ended up at $211.22 by the end of 3rd of December.

Right when SOL hit the $211.22 per SOL price, it triggered the bears who initiated their favorite practice. They started selling SOL at a really high rate, which worsened the situation for SOL. As a result, the price of SOL ended up diving below the $209 price, the 20-day EMA for Solana.

By December 4, 2021, the price of SOL had plunged even further. At first, the bears broke the $200 per SOL support line and pushed its price even lower, bringing it down to $181, the 100-day SMA for Solana.

However, bulls also continued with their efforts and carried out their purchases for SOL. Their rallies helped bring the price of SOL above the 100-day SMA. By December 4, 2021, the price of SOL had crossed the $181 price benchmark.

Since December 4, 2021, the bulls have been buying the dip and they have made constant efforts of pushing SOL over the 20-day EMA. Unfortunately, the bulls are finding it really difficult to make it happen given the current circumstances.

Even on December 5, 2021, the bulls continued their efforts and managed to bring the SOL price close to the 20-day EMA, but all was in vain. Since December 5, 2021, SOL’s price has been fluctuating between the $200 and $190 per SOL figure.

As of now, the RSI for SOL is in the bearish zone, which means that the bear may take the lead here and bring SOL’s price down to $140.