Analysis
SOL unable to clear $17 hurdle – What next?
SOL could stay below $17 for a while unless BTC inflicts a second leg of its rally above $31k. Here are potential opportunity areas to consider.
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?
Source: SOL/USDT on TradingView
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
Source: Coinglass
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.
