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Solana: Can sellers hijack SOL’s latest recovery?

2min Read

Solana fronted an impressive recovery but was yet to flip the daily timeframe to bullish bias at press time. Any faltering could present a shorting opportunity.

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

  • The daily chart market structure was bearish unless SOL go beyond $20.60
  • Massive sell/buy limit orders were placed at $20 and $17, respectively. 

Solana [SOL] recorded an impressive recovery and was up 4% in the past 24 hours before press time, as per CoinMarketCap. The altcoin traded at $18.8 at press time, up from the recent low of $17.3, but was still far from the recent high of $20.60. 


Is your portfolio green? Check out the SOL Profit Calculator 


In the meantime, Bitcoin [BTC] reclaimed its range-low of $25.8k and was fixated on the mid-range near $27k at the time of writing. 

Will SOL sustain the recovery?

Solana price analysis

Source: SOL/USDT on TradingView

SOL could clear the dynamic resistance of the 50 Exponential Moving Average (EMA) and edge higher if BTC retests $27k. It had reclaimed the previous bullish order block (OB) of $18.3 – $19.5 (white). 

The immediate hurdle was the 50-EMA of $18.81, which could be quickly cleared if BTC graces the $27k mark. But bulls could only have an edge if they exceed $20.6 and flip the daily chart’s market structure bullish. 

Should they falter at the previous high of $20.60, sellers could seek market entry and drop the price lower to the white area of $18.3 – $19.5 or the recent low of $17.3. 

Such a drop could present a shorting opportunity with an entry at $20. Based on traders ‘ risk appetite, the take-profit targets could be $18, $17.75, or $17.3. 

A move beyond $21 will invalidate the short idea. But bulls must clear the roadblock of $21-22 (red) to push forward. 

Meanwhile, the Relative Strength Index (RSI) has been in the lower range since mid-August, underscoring increased sell pressure over the same period. Similarly, the Chaikin Money Flow (CMF) retreated below zero recently and struggled to surge beyond it, demonstrating eased capital inflows. 

Massive sell/buy limit orders at $20 and $17

Solana price analysis

Source: Mobchart

The live order book tracking platform, Mobchart, indicated significant sell and buy interest at $20 and $17 on the four-hour timeframe at press time. As such, we could see a price reversal at or near these levels. If so, the above short idea’s entry position at $20 sounds reasonable. 


How much are 1,10,100 SOLs worth today


SOL’s move beyond $21 will call for exiting the above short position. So, traders should track BTC movement for risk mitigation and optimized set-up.  

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Benjamin is a Telecommunication Engineering graduate who is passionate about crypto-markets and unraveling market trends. Armed with charts and patterns, he's interested in making the intricate, complex landscape of digital assets more palatable for every user.
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