Disclaimer: These findings are solely the author’s opinions and should not be regarded as investment advice.
- Solana’s rejection at $15 was followed by successive bounces from $13.15 – $13.2
- A move down could be possible if this support zone is breached.
Solana has been absent for the last three weeks. [SOL] Support levels at $13.15 have remained solid. SOL’s bulls have held their ground so far. But, it might prove too difficult for exhausted bulls to defend this belt.
Read Solana’s [SOL] Price Prediction 2023-2024
Bitcoin [BTC] Also, resistance was encountered at $17.3k. The king coin would remain bearish until $17.3k and $17.6k were reached. Altcoins may have difficulty rallying because of this. Solana traded within a range in the last month. Any move below the mid-range mark would signal an increase towards $11.
Despite repeated attempts, Solana bulls could not penetrate a bearish breaker at $15 despite numerous attempts
Source: SOL/USDT TradingView
Solana held steady at $14.1-$15 for a few minutes on November 10. The stock quickly fell from $37 to the $14.1-$15 area when the news about the FTX collapse broke. After a few hours of consolidation, the market rallied to $18 and formed an order block. In recent weeks, however, this area of support has been flipped into a zone of resistance.
The same area highlighted in the red box has been a bearish breaker since 14 November. It also represented the highest points of the range within which SOL traded over the past month. This range ran from $15 to $11.3 and was at its mid-point 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. The Chaikin Money Flow, (CMF), was neutral and didn’t indicate any strong buying or selling pressures since 3 December.
Solana was most likely to move towards the range lows of $11.34 if it closed the 12-hour or 1-day trading session below $13.14.
Open Interest fell steadily, which indicates that buyers were not as strong.
Source: Coinglass
Open Interest has been making lower highs ever since 24 November. Over the past three week, the OI also declined gradually. Solana achieved a local peak of $14.96 that day, but has been unable climb further since then.
Buyers who believed that the market would break were forced to sell their positions due to falling OI and gradual price declines. Futures traders also felt bearish sentiment based upon the negative funding rate In recent days.