Solana [sol]: Before You Go Short, Watch Out For These Factors

Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the opinion of the author.

Bitcoin [BTC] confronted intense promoting strain and fell to the $20.8k mark because it skilled a 26% drop in below two days. Ethereum [ETH] fared worse and recorded losses of round 30% in the identical time interval. Solana [SOL] was additionally within the grip of the bears, and its construction on the value charts instructed that one other drop could possibly be across the nook. If the bulls can reclaim $32, some respite could possibly be seen, however the extra probably final result stays additional losses for Solana.

SOL- 4H

Short or long on Solana? Here are a few factors to watch out for

Supply: SOL/USDT on TradingView

The H4 market construction confirmed a powerful bearish bias. Since April, the pattern has been sharply downward, though SOL was in a position to maintain on to the $41 help degree all through Might. In June, nonetheless, the value slipped beneath this degree and has since retested the $45 space as a provide zone, and confirmed $41 as resistance, earlier than falling swiftly previously week.

The $32 space (purple field) has additionally been retested as a provide zone, whereas the $26-$27 space has been retested as a requirement zone (cyan field). The Fibonacci extension ranges confirmed that $27.8 may act as short-term help on the best way south.

SOL- 1H

Short or long on Solana? Here are a few factors to watch out for

Supply: SOL/USDT on TradingView

The hourly chart was barely extra difficult. The pattern was nonetheless bearish, however the decrease timeframe market construction was damaged due to the push to $32.3 previously few hours of buying and selling. In dotted white are two ranges that would see SOL set up a variety inside, with the $29.5 space being a brief demand zone.

Nevertheless, regardless of this short-term bullish break, the bigger timeframe construction remained bearish. Due to this fact, it was probably that SOL would head again towards the $26 mark, and presumably even decrease.

Short or long on Solana? Here are a few factors to watch out for

Supply: SOL/USDT on TradingView

The Relative Power Index (RSI) stood at 49.7, but when the bulls can defend the $29 zone, SOL would possibly nonetheless be capable to push towards $32 as soon as once more. Nevertheless, a session shut under the cyan field would probably see SOL drop towards $26.

The Stochastic RSI shaped a bearish crossover in overbought territory and was headed decrease, whereas the OBV confronted resistance at a degree that was supported only a few days in the past. The promoting strain may power the OBV to drop but once more.

Conclusion

An hourly buying and selling session shut beneath $29 may provide a chance to enter a scalp quick place, with a stop-loss simply above $30 and take-profit at $26.2. Nevertheless, if the bulls can defend the $29 space, a revisit to the $32 space may provide shorting alternatives.

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