Connect with us
Active Currencies 14791
Market Cap $2,469,545,528,576.10
Bitcoin Share 51.84%
24h Market Cap Change $-2.13

SOL faced rejection at the mid-range mark – is a move to $20.5 imminent?

2min Read
SOL faced rejection at the mid-range mark - is a move to $20.5 imminent?

Share this article

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

  • Solana faced a sharp rejection at the range highs.
  • A fall beneath $23.5 signified that another fall of 12% could follow.

Solana [SOL] performed extremely well in January when it recovered from $8 to reach $24 within weeks. In February, this bullish momentum stalled beneath a higher timeframe area of resistance at $27.

Is your portfolio green? Check the Solana Profit Calculator

SOL could not break out past $26 in the past two weeks. Bitcoin [BTC] also slid beneath the $23k level but found some buyers at the $22.4k mark. If BTC falls beneath $22.3k, it could drag many altcoins to lower prices.

A high-volume node and the mid-range present resistance to SOL

Solana faced rejection at the mid-range mark, is a move to $20.5 imminent?

Source: SOL/USDT on TradingView

The Visible Range Volume Profile showed that the Point of Control (red) lay at $24.3. The price was trading beneath this point, which meant that SOL bulls could face significant resistance at this point in the coming days.

The mid-point of Solana’s range from mid-January also lay at $23.53, close to the high-volume node. Therefore, the inference was that the entire zone from $23.5-$24.3 presented stern resistance to the buyers.

A good risk-to-reward trade would be to buy SOL on a bullish reaction at the range lows at $20.47. A bullish engulfing pattern, or a bullish market structure break on the four-hour chart, could tip buyers of a shift in momentum.

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

Open Interest supported the idea of bearish sentiment

Solana faced rejection at the mid-range mark, is a move to $20.5 imminent?

Source: Coinalyze

On 2 February, Solana retested the $26 level as resistance and saw a sharp rejection. The one-hour OI chart on 1 February showed a gradual move upward on the OI. This was followed by a sharp downward turn on 2 February.

In the past few days, one-hour trading sessions saw many more long positions (red) liquidated than short positions. Earlier on the day of writing, close to $1 million worth of long SOL positions were liquidated as the price fell below the $23 mark. Combined with the falling OI, the inference was discouraged longs and rising bearish sentiment.


Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.