Connect with us
Active Currencies 14908
Market Cap $2,458,130,332,489.80
Bitcoin Share 51.19%
24h Market Cap Change $-0.53

Solana: Should you wait for prices to drop below $100 to enter?

2min Read

Bulls lose their grip on the market as prices dip below the $103.4 level.

Solana: Should you wait for prices to drop below $100 to enter?

Share this article

  • Solana saw the market structure favor the sellers once again.
  • The liquidity pockets to the south would likely attract prices.

Solana [SOL] noted negative market sentiment over the past week, AMBCrypto reported.

Such setbacks were expected to provide a good buying opportunity, but the recent price action supported a bearish bias on the 12-hour timeframe.

With this development, more losses are expected over the next week or two. The $90 region is a strong demand zone, but it is also the place where the bulls might have to make a last stand.

The bearish market structure break

Solana 12-hour Chart

Source: SOL/USDT on TradingView

The second half of February saw the bulls lose their grip on the market. The 12-hour chart formed a higher low at $103.4, but SOL prices dropped below it on the 21st of February.

The RSI also sank below neutral 50 to signal bearish momentum was stronger.

The OBV also formed a range over the past two months. The tug-of-war between the buyers and sellers has been relatively evenly poised. Therefore, the $116-$126 resistance is key to the next uptrend.

Meanwhile, the Fibonacci retracement levels (pale yellow) showed that $94.16 and $87.49 were support levels where bulls could reverse lower timeframe downtrends.

Studying the liquidation heatmap for further clues

Solana Hyblock

Source: Hyblock

AMBCrypto noted that the $91.34 and $92.36 levels had $4.5 billion and $6.6 billion in estimated liquidations. They also had confluence with the Fibonacci retracement levels.

Therefore, it was highly likely that a sweep of the $87-$92 area was coming.

Realistic or not, here’s SOL’s market cap in BTC’s terms

It is unclear when such a move would materialize, but traders must be ready to capitalize on it. Given the trend of Solana since last October, a continuation upward is expected.

However, a fall below $85 would indicate that the bears have the upper hand. In that scenario, swing traders should exercise caution and avoid buying SOL until an uptrend is established once more.

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


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.