Solana – How a critical support level could stem the losses

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

  • Solana appeared to have a bearish market sentiment, momentum, and worth 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 approaching 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] Worth 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 might current a shopping for alternative for longer-term merchants.

The month-long downtrend has not halted but

Solana is in a downtrend, but this critical support level could stem the losses

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 under 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 (purple field). The Fibonacci retracement ranges confirmed that the 61.8% stage was at $20.18. The sellers managed to breach the confluence of this Fib stage and the upper timeframe breaker block in a transfer that showcased their dominance.

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Their maintain of the market continues, and at press time, the downtrend and market construction remained unbeaten. The RSI was under impartial 50 to underline bearish momentum. The 78.6% retracement stage at $16.94 is a line that the bulls should maintain.

A check of this stage can provide a shopping for alternative focusing on the native highs at $25.5, $29, and $32 (which is an formidable goal). If SOL falls under the $15.5-mark, it might invalidate the thought of a bullish reversal on the 78.6% stage.

Market sentiment leaned in favor of the bears

Solana is in a downtrend, but this critical support level could stem the losses

Supply: Coinalyze

On 10 September, the worth fell from $19.6 to $17.8 and the Open Curiosity rose by near $30 million price 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? Verify 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 consumers coming into the market. This doesn’t rule out the opportunity of one other dip, nonetheless, because the funding charge remained unfavourable and spot CVD has flattened over the previous few days.

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