Solana prices expected to see a bounce from this level

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

• The 4-hour market construction of Solana was bearish however the risk-to-reward was cheap. 
• The Fibonacci retracement ranges helped decide the place the bulls can be invalidated.

Solana [SOL] introduced a dangerous shopping for alternative for decrease timeframe merchants. Its development and market construction had been bearish on the upper timeframes, however evaluation of the 4-hour and 1-hour charts confirmed {that a} bounce in costs was potential.

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

On 23 June Bitcoin [BTC] managed to succeed in $31.3k, the best that BTC costs have reached in 2023. The earlier native excessive was at $31k in April. This steered bullish intent, however the worth motion of the previous week steered {that a} pullback can’t be dominated out. This made the lengthy setup introduced under riskier, and merchants should be prepared to chop the commerce upon invalidation.

The short-term Solana development was on the verge of shifting bearish

The 4-hour construction was bearish. After SOL moved to the $17.75 stage, it fashioned the next low at $16.16 on 23 June. Since then, the worth has sunk under, reaching $15.89 on 27 June. A collection of decrease highs had been additionally registered.

This confirmed SOL has launched into a downtrend. The Directional Motion Index confirmed the -DI (crimson) had a worth of 25 and the ADX (yellow) was at 19.54. ADX above 20 would sign a powerful bearish development. In the meantime, the RSI was additionally under impartial 50, exhibiting downward momentum. The CMF was falling however confirmed important capital influx with a studying of +0.06.

A set of Fibonacci retracement ranges was plotted primarily based on SOL’s bounce from $12.8 to $17.75. It confirmed the 50% retracement stage was at $15.28- which represented a great alternative to enter lengthy positions, with invalidation under $14.88. Conservatively it’s proven to be on the 61.8% stage above. To the north, the bearish H4 order block at $18.7 lined up effectively with the 23.6% extension stage at $18.92.

Coinalyze information confirmed rising demand however sentiment remained bearish

Supply: Coinalyze

On 26 June, when the worth of Solana fell from $17.1 to $16.08, the Open Curiosity raced increased. The OI gained near $20 million, which confirmed huge short-selling and agency bearish sentiment available in the market a few days in the past.

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But, the spot CVD has begun to development upward. Over the previous 24 hours, the CVD rose barely, whereas the OI remained flat regardless of short-term volatility. Taken collectively, it confirmed that market sentiment remained in favor of the sellers.