Are Solana bears on the move?

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

• The bulls didn’t safe the breakout degree of $26.85. 
• Open Rates of interest declined, and extra lengthy positions wrecked.

Solana’s [SOL] pullback prolonged forward of the Fed’s charge choice on 25/26 July. After Ripple Labs’ authorized win, SOL graced a brand new 2023 excessive of $32. Nevertheless, the celebration ceded quick afterwards, and SOL reversed a part of the features amidst pullback. 

Is your portfolio inexperienced? Take a look at the SOL Revenue Calculator 

Will the 50% Fib cease sellers?

Supply: SOL/USDT on TradingView

Fibonacci retracement ranges (yellow) have been plotted between the latest excessive of $32 and the swing low in mid-June of $12.8. On the time of writing, Solana worth motion had retreated to the $24 degree. Based mostly on the Fib device, the 50% Fib degree of $22.5 was the subsequent key assist degree after the $24. 

Moreover, the 50% Fib degree additionally coincided with the June highs; therefore bulls are anticipated to entrance defence on the space ought to the pullback lengthen decrease. If the drop eases on the $22.5 – $24 space, then bulls might re-target $30, however they’ll must bypass the $26.5 impediment to advance. 

However the drop beneath the 50% Fib degree will weaken SOL’s market additional. Such an prolonged bearish overdrive might set SOL to retest the $20 psychological mark, particularly if BTC information large losses after the Fed choice. 

In the meantime, the Relative Power Index and On Steadiness Quantity retreated decrease, denoting a dip in shopping for stress and demand prior to now few days. 

Open Rates of interest retreated too

Supply: Coinglass

The declining Open Curiosity (OI) charges additional confirmed the bearish grip. SOL’s OI has been treading southwards after peaking in mid-July. 

How a lot are 1,10,100 SOL price as we speak? 

Between mid-July and the time of writing, SOL’s OI dropped from >$400 million to beneath <$350 million, emphasizing the declining demand for SOL within the futures market forward of the Fed choice. 

So additional pullback might be on the playing cards, and the $24 might crack, forcing bulls to regroup on the June excessive and the 50% Fib degree of $22.5.