Connect with us
Active Currencies 14739
Market Cap $2,551,131,363,846.70
Bitcoin Share 51.56%
24h Market Cap Change $-4.25

With Solana unable to breach the $14.3 mark, could it see a 10% drop this week

2min Read
Solana unable to breach the $14.3 mark and could see a 10% drop this week

Share this article

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

  • Solana’s rejection at $15 was followed by successive bounces from $13.15 – $13.2
  • If this support zone fails, another move downward could follow

For the past three weeks, Solana [SOL] maintained a solid support level at the $13.15 region. SOL’s bulls have held their ground so far. However, another defense of this belt might be too much to ask from the exhausted bulls.


Read Solana’s [SOL] Price Prediction 2023-2024


Bitcoin [BTC] also faced resistance at $17.3k. The king coin would continue to have a bearish bias until the $17.3k and $17.6k levels were beaten. This meant that altcoins could have a hard time rallying as well. Solana traded within a range last month, and a move beneath the mid-range mark would signal a drop toward $11.

Solana bulls were unable to pierce a bearish breaker at $15 despite repeated attempts

Solana unable to breach the $14.3 mark and could see a 10% drop this week

Source: SOL/USDT on TradingView

On 10 November, Solana consolidated near the $14.1-$15 area for a few hours. It dropped swiftly from the $37 mark when news of the FTX collapse broke out. These few hours of consolidation were followed by a rally to $18 and formed a bullish order block. But in recent weeks, this zone of support was flipped to a region of resistance.

Since 14 November the same area, highlighted by the red box, has acted as a bearish breaker. It also represented the highs of the range that SOL traded within over the past month. This range extended from $15 to $11.3, and its mid-point lay at $13.14.

The Relative Strength Index (RSI) on the 12-hour chart was below neutral 50 and showed that bears occupied the driver’s seat. Meanwhile, the Chaikin Money Flow (CMF) was neutral and did not indicate either a strong buying or selling pressure since 3 December.

If Solana closed the 12-hour or one-day trading session below $13.14, it was likely to head toward the range lows at $11.3.

Open Interest was in steady decline, showing buyers were weak

Solana unable to breach the $14.3 mark and could see a 10% drop this week

Source: Coinglass

Since 24 November, the Open Interest chart has made a series of lower highs. Further, the OI gradually declined over the past three weeks. Solana reached a local top of $14.96 on that day, but has since been unable to ascend any further.

The falling OI and the gradual decline in prices meant that buyers who were optimistic about a breakout were forced to close their positions. Futures traders also had bearish sentiment based on the negative funding rate in recent days.

Share

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.