Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
- SOL Cracked Key Support Zone From $16.7 – $18.8 (Cyan)
- Sentiment on the futures market was neutral
After being classified as “security” by the US SEC last Monday (June 5), Solana [SOL] has not seen a major upward movement in the charts. The answer by Solana Foundation has not raised hopes for bulls like Bitcoin [BTC] hit $25k over the weekend (June 10/11).
Read from Solana [SOL] Price prediction 2023-24
At the time of writing, BTC was struggling to cross $26,000 ahead of May’s Consumer Price Index (CPI) data, scheduled for June 13 and the FOMC meeting on June 13/14. A bullish bias in a higher time frame for BTC, above USD 27,000, could tip SOL to clear a major overhead roadblock.
SOL turns bearish after weekend dump
Source: SOL/USDT on TradingView
The weekend slump saw SOL breach the $16.7 – $18.8 (cyan) support zone. The support zone was also a bullish order block (OB) formed on March 9 on the daily chart. The weekend’s slump followed BTC’s retest of $25k, which sent SOL into a bearish bias after falling below trendline resistance and the March low of $16.
Unless BTC moves beyond $26.6k and moves above $27k, bulls could struggle to clear the confluence area of bullish OB and trendline resistance near $17. A price rejection in the aforementioned confluence area could drag SOL to $14.9 or $12.8 support levels.
Conversely, bulls may gain an edge if SOL moves above the $18.75 confluence area. However, they must clear the overhead roadblock of $19.7 – $21.2 (White) – Another bullish OB-turned-resistance zone formed on February 10 on the daily chart.
The RSI slipped into the oversold zone at the time of writing, while the OBV fell to 300 million, suggesting a decline in buying pressure and demand.
The calm before the storm?
Source: Coinglass
The 24-hour time frame for SOL’s exchange longs/shorts ratio showed neutral sentiment in the futures market. Likewise, overall crypto sentiment was, as of this writing, “neutral,” according to the Crypto Green and Fear Index.
Is your wallet green? look at the SOL Profit Calculator
However, this could be the calm before the storm as price swings can be expected from June 13. Traders should follow this week’s US economic calendar (June 11-17) for more optimized trade setups.