Analysis
Solana retests key support: Is a price reversal likely?
Posted:
| Last updated: September 4th, 2023
Journalist
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- SOL retraced to a crucial bullish order block near $18.
- MobChart showed massive buy limit orders at $18 and $19.
Solana [SOL] breached the $20 psychological level, but the drop could ease as buying interest surged near the $18 and $19 levels. Nevertheless, Bitcoin [BTC] was stuck in the range-low at $25k at press time and could complicate a solid upswing for SOL.
How much are 1,10,100 SOLs worth today?
Can bulls defend the $18-$19 area?
Source: SOL/USDT on TradingView
The $20 level was crucial support between April, May and at the end of August. But it was breached in September. However, the plunge has hit a daily bullish order block (OB) of $18.3 – $19.5 (white).
If the demand spikes at the above bullish OB, SOL could target $22 or the 50% Fib level ($22.5) in the next few days.
Conversely, sellers could push it lower to 23.6% Fib level ($17.4) or the next daily bullish OB of $15.6 – $16.65 (cyan).
Meanwhile, the Relative Strength Index (RSI) oscillated below 50 in the past few days, showing muted but equal buying and selling pressure.
Similarly, the Chaikin Money Flow (CMF) exhibited swings around the zero mark, reinforcing capital inflows wavered over the same period.
Massive buying interest at $18-$19
Source: MobChart
On Mobchart, the real-time order tracking platform, there was significant buying interest at $18 and $19. Large buy limit orders were placed at these levels on the Binance Exchange, as shown by the green lines. So, the price could bounce from these levels.
Is your portfolio green? Check out the SOL Profit Calculator
On the sell side, large sell limit orders were placed at the $22 level on the 4-hour timeframe. The inference from above is that a price reversal could occur when SOL edges closer to $22.
So, if BTC defends the range-low, SOL could aim at $22 or the 50% Fib level ($22.5). But bulls must clear the $20.2 hurdle (38.2% Fib level) to push forward in such an upswing scenario.
