Are Solana bears on the move?

Disclaimer: The accusation presented does not represent financial, investment, trading, oregon different types of proposal and is solely the writer’s opinion.

• The bulls failed to unafraid the breakout level of $26.85. 
• Open Interest rates declined, and much agelong positions wrecked.

Solana’s [SOL] pullback extended up of the Fed’s complaint determination connected 25/26 July. After Ripple Labs’ ineligible win, SOL graced a caller 2023 precocious of $32. However, the solemnisation ceded accelerated afterwards, and SOL reversed portion of the gains amidst pullback. 

Is your portfolio green? Check retired the SOL Profit Calculator 

Will the 50% Fib halt sellers?

Fibonacci retracement levels (yellow) were plotted betwixt the caller precocious of $32 and the plaything debased successful mid-June of $12.8. At the clip of writing, Solana terms enactment had retreated to the $24 level. Based connected the Fib tool, the 50% Fib level of $22.5 was the adjacent cardinal enactment level aft the $24. 

Besides, the 50% Fib level besides coincided with the June highs; hence bulls are expected to beforehand defence astatine the country should the pullback widen lower. If the driblet eases astatine the $22.5 – $24 area, past bulls could re-target $30, but they’ll person to bypass the $26.5 obstacle to advance. 

But the driblet beneath the 50% Fib level volition weaken SOL’s marketplace further. Such an extended bearish overdrive could acceptable SOL to retest the $20 intelligence mark, particularly if BTC records monolithic losses aft the Fed decision. 

Meanwhile, the Relative Strength Index and On Balance Volume retreated lower, denoting a dip successful buying unit and request successful the past fewer days. 

Open Interest rates retreated too

The declining Open Interest (OI) rates further confirmed the bearish grip. SOL’s OI has been treading southwards aft peaking successful mid-July. 

How overmuch are 1,10,100 SOL worthy today? 

Between mid-July and the clip of writing, SOL’s OI dropped from >$400 cardinal to beneath <$350 million, emphasizing the declining request for SOL successful the futures marketplace up of the Fed decision. 

So further pullback could beryllium connected the cards, and the $24 could crack, forcing bulls to regroup astatine the June precocious and the 50% Fib level of $22.5.