Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The demand zone at the key price level could be significant in reversing a bearish slide.
- The financing rate remained positive to encourage buyers.
As of writing, Solana [SOL] faced increasing sales pressure. This caused the altcoin to drop to the support level around the $22 price zone. As such, a successful defense of the $22.4 support level could be key for bulls to maintain their upside.
Read Solana’s [SOL] Price Forecast 2023-24
Meanwhile, market conditions continued to send mixed signals with Bitcoin [BTC] ranging between $28.9k and $29.4k
The main support level provides new buying opportunities for bulls to reverse a bearish slide
Source: SOL/USDT on trade view
Solana’s strong bullish rally lost momentum around the $30 – $32 price level. This provided sellers with an entry point into the higher time frames from the $29 resistance level.
The current choppy market conditions favored SOL bears, with the price making a series of lower highs. However, prices have hovered above a key support level for the past 48 hours, with bulls looking to reverse recent losses.
Bulls have a precedent for strong buying power from the current support level, as seen on July 13. This support level also serves as an important demand zone. Therefore, buyers can bid SOL from this price point with profit targets of $25 – $28.
If the bears break this support level, it will flip the Solana market structure bearish. Sellers can target $18-$20 as short term goals.
Meanwhile, the RSI remained below the neutral 50 as the OBV continued its slow decline. Both indicators supported a bearish extension as of writing.
Realistic or not, here is the market cap of SOL in BTC terms
Positive funding ratio could aid in a bullish reversal
Source: Coinglass
A look at the funding rate data on Mint glass showed that despite the change in direction, Solana’s funding rate has remained largely positive since the significant run-up to $32.
This could be helpful for bulls, who are trying to halt the bearish slide and continue SOL’s uptrend.