Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The structure was neutral on the daily chart at time of press.
- About $1.2 million in long positions were liquidated in the past 24 hours.
Solana [SOL] saw price fluctuations in April and May also did not start well. On April 9, SOL rallied, rising 30% from $20 to $26.
Is your wallet green? account SOL Profit Calculator
But the price rejection at the $26 resistance level led to retracement, erasing all gains. Bulls’ recovery attempts were thwarted as SOL witnessed downward pressure that could cause the $20 support level to be retested.
Meanwhile, crypto markets may see heightened volatility in the first week of May due to the May 2-3 FOMC meeting. Therefore, macro traders should monitor key SOL levels during this period.
Sellers are eager to drop SOL below the 50-EMA
Source: SOL/USDT on TradingView
Price action fluctuated between $20 and $23.9 at the end of March. But in April, price action fluctuated between $20 and $26. In particular, the $19.92 is a key bullish order block on the daily chart that has prevented further declines since late March.
The recovery that took place at the end of April reached an FVG (fair value gap) of $23.19 – $23.98 (white), which brought bulls’ efforts to a halt. At the time of writing, sellers were eager to push SOL below the 50-EMA ($21.99) (blue line).
If sellers clear the hurdle, SOL could drop to support around $20 and try to recover again. If the USD 20 support breaks, the SOL/USDT pair could drop as low as USD 17.30.
On the other hand, a close above the FVG zone could provide bulls with the needed leverage to hit the $26 price cap. However, they also have to overcome the obstacle at 200-EMA (25.10). However, a retest of the price cap at $26 could attract more sellers.
At the time of writing, the RSI (Relative Strength Index) was at 49.94, a neutral position, meaning price action could go either way. However, the OBV (On Balance Volume) has been falling since mid-April and could give sellers an edge.
More long positions broke
Source: Coinalyse
How many Worth 1,10,100 SOLs today?
According to Coin analysis, $1.2 million in long positions have been destroyed in the last 24 hours. During the same period, only $373,000 in short positions were liquidated, reinforcing underlying bearish sentiment at the time of writing. The trend could lead bears to drop SOL to $20 or lower.
However, the aggregated spot CVD (cumulative volume delta) rose slightly, indicating that bulls were fighting for control. A bullish Bitcoin [BTC] can boost bulls’ efforts, so it’s worth following these fronts before making any moves.