Solana (SOL) is currently at the bottom of its rising channel, which has been supportive since the beginning of the month.
This decline towards the support line began on May 20. Currently trading at $169, the altcoin has dropped 7% in value over the last 7 days.
Solana tries to maintain support
SOL's movement in the ascending channel began when the altcoin initiated an uptrend on April 30. On that day, Solana was trading at $129. By May 20, its value had risen to a peak of $184, after which selling activity began.
Since the coin's price dropped last week, it is now poised to fall below the 20-day exponential moving average (EMA). This moving average reflects the average price of SOL over the last 20 days.
When the price of an asset falls below this key moving average, it signals that its short-term trend may be reversing. This is because the 20-day EMA acts as a support line. However, a break below suggests that sellers are outweighing buyers.
If Solana price breaks the support at $163, it could experience a further decline to $157.99.
However, thanks to the positive funding rate on cryptocurrency exchanges, futures traders continue to take long positions on $SOL . This could lead to a surge in buying pressure, pushing the altcoin price towards $172.41.
