Solana: Can bulls sustain the buying pressure

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

• Bears lately broke under a essential worth degree however a fast bullish rebound might put a pause to additional beneficial properties.
• Sellers continued to carry the higher share of open contracts on the upper timeframes. 

Solana’s [SOL] bearish momentum noticed it break under the confluence of the $22.4 help degree and the bullish order block (OB) over the previous 48 hours. This was after the bullish protection of the extent failed to resist the promoting stress with worth descending to the $19 area.

Sensible or not, right here’s SOL’s market cap in BTC phrases

Regardless of the bearish bias, bulls had been making an attempt a fast restoration with 7% beneficial properties over the previous 12 hours. A essential hurdle stands in the way in which of the bullish rebound on the new resistance degree ($22.4). Can Solana bulls maintain the shopping for stress to reverse the current losses?

Will bears lengthen beneficial properties on retest of $22.4 degree or will bulls rebound?

Solana’s bearish slide has seen sellers flip two key help ranges over the previous month. The $25.3 help was the primary to present means on the finish of July. Whereas bulls staunchly defended the $22.4 degree, it additionally caved to the promoting stress on 17 August.

The flip of the newest help degree was vital as a result of it broke the earlier decrease excessive suggesting a shift in momentum on the upper timeframes.

Regardless of bears having the higher hand, market circumstances seemed to be choosing again up with Bitcoin [BTC] buying and selling at $26.5k, as of press time. This might assist bulls shortly get well the $22.4 worth degree.

Then again, if the promoting stress persists, the re-test of the $22.4 degree might current new shorting beneficial properties with sellers focusing on the $18-$20 worth zone.

In the meantime, the short-term bullish restoration noticed the Relative Energy Index (RSI) transfer to 43. This signaled rising shopping for stress. Equally, the Chaikin Cash Stream (CMF) turned optimistic with a studying of +0.06, hinting at rising capital inflows.

How a lot are 1, 10, or 100 SOL value at this time?

Sellers continued to dominate open contract positions

Supply: Coinglass

Knowledge from Coinglass confirmed that sellers had been extra prone to lengthen their beneficial properties. The lengthy/quick ratio noticed shorts maintain 52.27% of all SOL open contracts. This was in distinction to the 47.73% share held by longs on the 12-hour timeframe.

With an $18 million distinction in open positions, sellers remained assured of sustaining the bearish bias. Nonetheless, merchants ought to actively observe BTC’s worth motion, as a bullish push might reverse the bearish bias.