SOL bulls fail to drive price past $20.6 resistance; is a rerun on the cards?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• Solana saw a rejection from the local resistance above $20
• The $19.4 level acted as a short-term demand zone but the bulls exhibited weakness in recent days

Solana [SOL] has trended downward since late July. The network’s TVL has also been on a decline for a long time now, but that need not worry investors too much. The developments around Solana indicated its commitment to growth.

Read Solana’s [SOL] Price Prediction 2023-24

The Solana network saw the launch of the QCAD digital dollar. Stablecorp aims to put Canadian digital dollars within reach of the millions of Solana users in an attempt to grow the on-chain FX market.

Solana bulls could consolidate underneath $19.5 before another push

Source: SOL/USDT on TradingView

At the time of writing SOL has a bullish market structure on the four-hour chart. The recent higher low sat at $18.58, and the higher high at $20.54. It was not encouraging that the buyers were unable to breach the $20.6 level, but there was some hope.

A move below $18.58 would be needed to flip the structure bearishly. Until that time, bulls can hope for SOL to form a short-term range, consolidate, and then drive higher. But the evidence at hand showed the sellers had the advantage.

The Relative Strength Index (RSI) has been below neutral 50 in recent days and the On-Balance Volume (OBV) was unable to crack a local resistance despite multiple attempts in September. Together the indicators signaled Solana prices could dip to $18.6 and lower over the coming days.

The futures market showed little bullish conviction

Source: Coinalyze

Since 20 September the Open Interest (OI) has been in a downtrend. The price hovered about the $19.4-$19.6 region but lacked a strong trend over the past few days. The inference was that bullish sentiment in the market was muted and long positions were discouraged.

How much are 1, 10, or 100 SOL worth today?

The spot Cumulative Volume Delta (CVD) was also in a downtrend over the past week. This meant demand in the Solana spot markets was weak. Hence, in the coming days, these factors must change before SOL can have a good chance of rallying past the $20.6 resistance.