Solana: Details of the upcoming risky opportunity

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.

• There was a chance that SOL may retrace the previous week’s losses earlier than heading decrease once more.
• The sluggish grind increased for costs prior to now week urged sentiment may start to shift bullish.

The crypto market was at an unsure place. The sentiment has been strongly bearish over the previous two weeks however many altcoins confirmed {that a} break within the present bearish construction was potential. Solana [SOL] was amongst them, however such a structural break needn’t be adopted by an uptrend.

Learn Solana’s [SOL] Worth Prediction 2023-24

A transfer again to the late Might highs earlier than one other rejection was additionally possible- so merchants have a call to make. Do they attempt to experience the decrease timeframe momentum upward, within the occasion of a bullish shift? Or do they watch for increased chance shorting alternatives?

The confluence of Fibonacci and imbalance close to $17 may halt the progress of SOL bulls

On the day by day timeframe, the Solana market has been bearish since 8 Might. The early June upward strikes to $22.3 didn’t change the upper timeframe outlook. It turned out to be a swift bearish reversal on the H4 chart after what appeared to be an uptrend from $20.3.

On the time of writing, the value was caught beneath the 50% Fibonacci retracement degree and buying and selling quantity was low. This pointed towards sidelined market contributors ready for a route to be established. The RSI was at 56 to point out upward momentum for SOL however its OBV was unable to interrupt above a major resistance degree.

This degree stretched again to Might and served as a help again then. Therefore a transfer above this degree can be one of many first sturdy indicators of an uptrend on the 4-hour chart. But, till that point, merchants might be bearishly biased.

The FVG on the $16.8 area (highlighted by the white field) had confluence with the 61.8% retracement degree at $16.86. A check of this degree or the imbalance itself can present a dangerous shorting alternative for SOL bears, concentrating on the low at $12.8.

Coinalyze information confirmed sentiment remained bearish regardless of the bounce

Supply: Coinalyze

The spot CVD of Solana has been in a downtrend in June. On 11 June when the costs tumbled, the funding price surged deep into detrimental territory. This mirrored the dominance of quick positions available in the market.

How a lot are 1, 10, or 100 SOL price right this moment?

Since then, the value has slowly climbed increased, however the Open Curiosity slid decrease on the chart. This signaled discouraged lengthy positions and that bearish sentiment prevailed available in the market.

Due to this fact, whereas a bullish reversal can’t be dominated out, the proof at hand pointed towards additional losses for SOL.