SOL unable to clear $17 hurdle – What next?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- SOL has been fluctuating below $17 since 21 June.
- Funding rates wavered in the past few days.
Like Bitcoin’s [BTC] fluctuations below $31k in the past few days, Solana [SOL] consolidated below $17. BTC rallied after increased interest from institutional players seeking leveraged and spot ETFs (Exchange-Traded Funds). But the rally has cooled off, constricting SOL below $17.
Read Solana’s [SOL] Price Prediction 2023-24
Besides, SOL wasn’t out of the woods after US SEC categorized it as a “security”. A recent report showed that the ecosystem’s activity dropped to about 50% after the Binance lawsuit.
Is a retest of POC likely?
From 21 June, SOL’s price action was marked by fluctuations and traders’ indecision below $17 on the higher timeframe charts. After mounting above the POC (Point of Control, red line, $15.45) of the Fixed Range Volume Profile, SOL’s recovery hit brakes at $17.33.
The $17 aligns with the March low.
A price rejection at $17.33 could ease at two key levels – $16 or the POC. Although retesting on both could offer buying opportunities, the POC retest could offer the most ideal and impressive RR for long opportunities, targeting $17.33.
A breach below POC could steady at $14.
Conversely, clearance of the $17 obstacle will invalidate the above thesis, especially if BTC surges beyond $31k. The $18 and $19 will be the next targets in such an upswing scenario.
Meanwhile, the RSI had dipped but attempted recovery and was yet to cross the 50-mark. A resistance at 50-mark could set SOL to falter further downwards. But, the CMF (Chaikin Money Flow) remained positive, meaning capital inflows remained steady as of press time.
Solana funding rates wavered
How much are 1,10,100 SOLs worth today?
A look at the funding rates further paints traders’ actions and possible routes SOL might take. The steady and positive funding rates from 20 – 23 June led to a 12% rally as SOL hiked from $15.45 (POC) to $17.33 in the same period.
However, funding rates have fluctuated since 23 June, derailing chances of a strong move beyond the $17 roadblock. So, a retest of the POC could offer new buying opportunities if the fluctuation persists and BTC remains bullish.