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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?
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  • 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.

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Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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