- Solana needs to flip $35 into support or risk sliding to $26.
- Gala may be stuck in a narrow range between $0.05 and $0.065 in the upcoming sessions.
- TRON takes a breather at $0.065 following significant recoil from the latest dip to $0.046.
For the cryptocurrency industry, it has been quite stormy over the last couple of months. No stones were left unturned earlier this week with Bitcoin diving to $20,000.
The total market capitalization slipped below the $1 trillion mark on Sunday, reflecting the magnitude of the selloff. At the time of writing, declines seemed apparent with altcoins like Solana, Gala, and TRON likely to lose more ground as we usher in the weekend session.
Solana
SOL corrected slightly below $30 after it was rejected from highs around $35 on Thursday. An ascending parallel channel, which might confirm a bear flag pattern in the short-term, prevented losses from extending to the recent major support at $26.
With SOL having reclaimed the position above $30 at the time of writing, a recovery stint was expected to gain traction. Traders may affirm the validity of the uptrend with a buy signal as displayed by the Moving Average Convergence Divergence.
SOL/USD Four-Hour Chart
A glance at higher levels highlighted potential delay and possibly another rejection from the confluence created by the 50 Simple Moving Average (SMA) and the channel’s middle boundary. Traders cannot also ignore the rejection suffered at $35 and the upper resistance limit.
If the channel’s lower boundary support breaks, a bear flag pattern might confirm and trigger declines to $26. If push comes to shove, Solana’s down leg may stretch to $20 before a significant recovery takes place.
Gala
GALA appeared very close to the floor as holders nursed wounds in anticipation of a bullish turnaround. The 12-hour chart highlighted a narrow range that might govern price action in the short term. For instance, support at $0.05 will ensure declines are mitigated, but recovery may be capped beneath $0.065.
The Relative Strength Index (RSI) has spotted a bullish divergence, which, if embraced, could provide GALA with an escape. To be on the safer side, the upper range limit must come down to allow the subsequent move to $0.1.
GALA/USD 12-Hour Chart
On the downside, it would be premature to assume that Gala’s price is already out of the woods. If support at $0.05 fails to hold in the coming sessions, the token will explore downhill levels to $0.04 and $0.03.
TRON
After rebounding as one of the strongest altcoins on Thursday, TRON hit a snag at $0.065. The sharp move came as a reflex reaction in the wake of the dire freefall from highs above $0.08.
Doddering at $0.06 at the time of writing, TRON needs to grab onto higher support, preferably at $0.054 to extend the up leg. The positive sentiment from the MACD implies that bulls have the upper hand.
TRX/USD Four-Hour Chart
The path to $0.1 is unlikely to be smooth, considering the position of the applied moving average. As long the 50 SMA continues to expand the divergence below the 200 and 100 SMA, the odds will work against the bulls. In other words, it was still possible for TRON to drop to $0.054 and $0.046, respectively.
