Analysis
SOL pushes past $18 support but short-term sentiment favors these traders
Solana showed some strong bullish signs in the short-term, however, its long-term outlook still remained at the mercy of sellers. Which direction will SOL head in?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- Solana has a bullish structure on the four-hour chart but a bearish one on the daily timeframe
- The lower timeframe sentiment showed bullish conviction had dried up
Solana [SOL] bulls saw their fortunes change over the past few days when the selling pressure eased and gave them a moment’s respite. The past week saw a bounce in prices that measured close to 20%.
Read Solana’s [SOL] Price Prediction 2023-24
A recent report highlighted the impact commentary and interactions on social media can have on the price of crypto assets. While SOL has some near-term bullish strength, the market sentiment was not firmly bullish at press time.
Can Solana break the bearish market structure?
Source: SOL/USDT on TradingView
The rally from $12.8 to $32.13 in June and July was used to plot a set of Fibonacci retracement levels (pale yellow). The 78.6% extension level was at $16.94. In the past ten days, the lowest SOL reached was $17.33 before buying pressure took the prices higher.
Hence, the support level did not face a test, and the price could be attracted to it since it was also a short-term resistance back in mid-June. It presented an attractive liquidity pocket. The daily market structure remained bearish as SOL needed to beat the $20.6 level to flip it bullishly.
The Relative Strength Index (RSI) was just above neutral 50 and signaled a possible shift in the trend was at hand. The On-Balance Volume (OBV) also broke above September’s resistance and indicated buyer strength was growing. A move past $20.6 and retest could offer a buying opportunity targeting $25.4 and $27.5.
The Open Interest chart showed disinterested bulls
Source: Coinalyze
The Open Interest has been in decline over the past 24 hours and the spot Cumulative Volume Delta (CVD) has also plunged lower. During this time Solana traded at the $20 level, and faces resistance up to the $20.6 mark. The funding rate was negative to highlight short positions had the majority.
How much are 1, 10, or 100 SOL worth today?
The falling OI beneath a resistance zone showed speculators lacked bullish conviction. The falling spot CVD was evidence of strong selling pressure. Hence, the short-term sentiment appeared bearish and SOL could experience a minor pullback from $20 before bouncing higher.
