Solana Coin: Navigating Trends and Recovery
Solana (SOL), a prominent player in the cryptocurrency world, has experienced a recent decline in momentum, causing it to dip below the critical support level of $22.4. This decline coincided with the consolidation of the upward order block (OB) within the past 48 hours. This shift came about as the support level failed to withstand the selling pressure, resulting in the price plummeting to the $19 region.
Despite this downward trend, bullish investors made a swift attempt at recovery, managing to secure a 7% gain over the last 12 hours. However, a significant challenge lies ahead in the form of a new resistance level at $22.4. The question at hand is whether the Solana bulls can muster the necessary buying pressure to overturn the recent losses.
The Future of Solana Coin
The downward trajectory of Solana has led to the reversal of two major support levels in the previous month. The first support level at $25.3 was lost by the end of July. Subsequently, while the $22.4 level initially held up against pressure, it eventually succumbed on August 17. This reversal of the latest support level bears significance as it signifies a shift in momentum in higher time frames, breaking the previous low.
Despite the bears’ control, the market landscape appears to be on the path to recovery, with Bitcoin trading at $26,000 at the time of writing. This recovery could potentially aid the bulls in promptly reclaiming the $22.4 price point. On the flip side, if selling pressure persists, a retest of the $22.4 level might present opportunities for short-term gains, while sellers set their sights on the price range of $18 to $20.
Meanwhile, the short-term bullish recovery has coincided with a rise in the Relative Strength Index (RSI) to 43, indicating a surge in buying pressure. Similarly, the Chaikin Money Flow (CMF) has turned positive, boasting a value of +0.06, which signals an influx of capital.
Solana Coin Analysis
Data sourced from Coinglass indicates that sellers are poised to further enhance their gains. The long/short ratio reveals that, in the 12-hour timeframe, shorts hold 52.27% of all open SOL contracts, as opposed to the 47.73% held by longs.
With an $18 million discrepancy in open positions, sellers continue to display confidence in the ongoing downward trend. Nevertheless, given that an upward trend holds the potential to reverse this trajectory, investors are advised to actively monitor the price movements of Bitcoin.
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