Solana – How a critical support level could stem the losses
Journalist
Posted:
Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion
- Solana appeared to have a bearish market sentiment, momentum, and value construction
- It additionally offered a potential high-reward shopping for alternative within the occasion of one other drop in costs
Solana [SOL] noticed a hike in social dominance as information of the upcoming FTX liquidation seized increasingly more public consideration. And but, this spike got here alongside a downtrend for SOL costs, muting hypothesis that market sentiment has reversed itself.
Learn Solana’s [SOL] Value Prediction 2023-24
The asset noticed rising Open Curiosity alongside falling costs final week to spotlight the bearish sentiment. The value motion confirmed one other dip in the direction of $17 was potential too. If this happens, it may current a shopping for alternative for longer-term merchants.
The month-long downtrend has not halted but
Supply: SOL/USDT on TradingView
On the each day chart, Solana projected a bearish market construction. This occurred on 5 August when the worth dropped beneath the current greater low at $22.73. It noticed a pointy transfer south in mid-August. In 8 days, SOL dipped by as a lot as 23.8% at its lowest.
In doing so, the bullish breaker block from the weekly timeframe above the $20-region was breached as help (crimson field). The Fibonacci retracement ranges confirmed that the 61.8% degree was at $20.18. The sellers managed to breach the confluence of this Fib degree and the upper timeframe breaker block in a transfer that showcased their dominance.
Their maintain of the market continues, and at press time, the downtrend and market construction remained unbeaten. The RSI was beneath impartial 50 to underline bearish momentum. The 78.6% retracement degree at $16.94 is a line that the bulls should maintain.
A check of this degree can supply a shopping for alternative focusing on the native highs at $25.5, $29, and $32 (which is an bold goal). If SOL falls beneath the $15.5-mark, it might invalidate the thought of a bullish reversal on the 78.6% degree.
Market sentiment leaned in favor of the bears
Supply: Coinalyze
On 10 September, the worth fell from $19.6 to $17.8 and the Open Curiosity rose by near $30 million value of contracts. Mixed with the heavy unfavourable funding charge on that day, it offered proof of a bearish conviction final week.
Is your portfolio inexperienced? Test the Solana Revenue Calculator
Since then, the spot CVD has seen a bounce greater. The OI additionally climbed when SOL bounced from the $17.6-territory, exhibiting patrons getting into the market. This doesn’t rule out the potential of one other dip, nevertheless, because the funding charge remained unfavourable and spot CVD has flattened over the previous few days.
