What to know:
- Solana price analysis shows SOL holding $84 support after weak weekly market losses.
- Analysts see $81.30 as next support, while $87-$90 remains the recovery area ahead.
- CoinGlass data shows futures volume fell 26.45% as long liquidations reached $2.92M.
Solana price analysis remained focused on defended support on Wednesday, May 20, after the latest weak move. Buyers stayed active near a key demand zone, while analysts watched whether the token could regain momentum or face another test of lower support in coming sessions.
At the time of writing, Solana is trading at $84.62, showing a decline of 0.15% in the past day. The trading volume is down by 18.36% and is currently standing at $2.58 billion. Over the last week, the SOL coin price has decreased by 8.15%, according to CoinMarketCap.
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Solana Price Analysis Eyes $90 Recovery Zone
Crypto analyst BitGuru highlighted that Solana has started showing signs of stabilization after its recent downtrend. He said the price is responding off a solid support level around $84, where the buyers once again stepped in.
On the other hand, if the momentum becomes strong, SOL may overcome the resistance level between $87 and $90. That sentiment has maintained the Solana price analysis on a potential rebound, which still requires more volume.
Moreover, another analyst, More Crypto Online, mentioned that Solana remains caught in a sideways range. Moreover, he noted that the token has not seen a significant shift since the last session, limiting short-term price action.
The analyst also indicated that there is pressure in the short term from the downside. However, if market structure improves, Solana may be able to resume the C-wave uptrend, he added.
The analyst also added that there is still no sign that a local low has formed. Meanwhile, in the Solana price analysis, he pointed out the next support level at $81.30 in case of a continuation of selling pressure.
SOL Trades Below EMAs as BB Show Weakness
From a technical perspective, SOL remains below its key short-term moving averages. The 20-day EMA stood at $87.84, while the 50-day EMA stood at $87.66. Both of these levels were above the current price and acted as near-term resistance in Solana price analysis.
Weak trend conditions also prevailed for the longer EMA structure. The 100-day EMA stood at $92.97, while the 200-day EMA stood at $109.59. As for the broader trend, SOL needs to recover from these higher levels.
Limited upside strength was also present on the Bollinger Bands (BB). The middle band stood at $88.59, the upper band at $97.23, and the lower band at $79.95. SOL remained in the middle band with the price closer to support.
Open Interest Rises as Futures Volume Declines
CoinGlass data shows weaker derivatives activity during the same period. The futures volume declined 26.45% to $5.80 billion, and open interest increased 0.91% to $5.64 billion. The SOL OI-weighted funding rate stood at 0.0005%.
Liquidation figures indicated that bulls were under greater pressure. Total liquidations over the past 24 hours were $3.61 million, including long positions of $2.92 million and short positions of $691.06K.
The recent Solana price analysis indicates that the support has been defended and positioning is weak. For now, $84 remains an immediate support zone, while $87 to $90 is the first recovery area if buyers regain control.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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