Are Solana bears on the move?

10 months ago 81

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?

Source: SOL/USDT connected TradingView

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

Source: Coinglass

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. 

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