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Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
- Solana has a bullish structure on the four-hour chart, but a bearish structure on the daily time frame
- Sentiment in the lower time frame showed that bullish belief had dried up
Solana [SOL] Bulls saw their fortunes change in recent days as selling pressure eased, giving them a moment’s respite. Last week, prices saw an increase of almost 20%.
Read Solana’s [SOL] Price forecast 2023-24
A recent report highlighted the impact that social media comments and interactions can have on the price of crypto assets. While SOL has some short-term bullish strength, market sentiment at the time of writing was not particularly bullish.
Can Solana break the bearish market structure?
Source: SOL/USDT on TradingView
The rally from $12.8 to $32.13 in June and July was used to chart a series of Fibonacci retracement levels (light yellow). The 78.6% expansion level was $16.94. Over the past ten days, the lowest SOL reached was $17.33, before buying pressure pushed prices higher.
So the support level was not tested, and the price was able to gravitate towards it because it was also a short-term resistance in mid-June. It offered an attractive liquidity position. The daily market structure remained bearish as SOL needed to beat the $20.6 level to turn bullish.
The Relative Strength Index (RSI) was just above neutral 50, indicating a possible trend shift was imminent. On-Balance Volume (OBV) also broke above September’s resistance, indicating increasing buying power. A move past $20.6 and a retest could provide a buying opportunity targeting $25.4 and $27.5.
The Open Interest chart showed uninterested bulls
Source: Coinalyse
The Open Interest has fallen over the past 24 hours and the Spot Cumulative Volume Delta (CVD) has also fallen lower. During this period, Solana has been trading at the $20 level and is facing resistance up to $20.6. The funding rate was negative to indicate that short positions were in the majority.
How much is 1, 10 or 100 SOL worth today?
The declining OI below a resistance zone showed that speculators did not have a bullish conviction. The declining CVD was evidence of strong selling pressure. Therefore, short-term sentiment looked bearish and SOL could experience a small pullback to $20 before bouncing higher.