Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion
- The previous bullish order block within the $15 neighborhood has prevented Solana bulls from progressing
- Declining open curiosity meant futures merchants don’t anticipate a rally
Since mid-November, Solana bulls had been repeatedly pushed again from the $15 resistance zone. The technical indicators didn’t but present robust upward momentum or giant shopping for strain behind SOL but.
Learn Solana’s [SOL] Value Prediction 2023-2024
A latest article highlighted why the $15 mark was crucial. Right here we check out how quick sellers can look to commerce SOL, and the way this bearish notion might be invalidated.
The H4 bearish breaker was not but breached and will supply a promoting alternative
Supply: SOL/USDT on TradingView
On the four-hour chart, the Relative Power Index (RSI) fell beneath impartial 50 to face at 44 at press time. Nonetheless this didn’t present a downtrend in progress. In the meantime, the On-Steadiness Quantity (OBV) has been flat over the previous two weeks as nicely. The Chaikin Cash Move (CMF) was at -0.05, and any transfer decrease could be a sign of great promoting strain available in the market.
The value motion on the decrease timeframes equivalent to one-hour confirmed a scarcity of a particular development. Solana bounced between the $13.14 and $15 values since 23 November, with two particular person drops to the $12.8 stage.
On the time of writing, Bitcoin ventured to the $16.7k mark however rapidly moved upward as demand crept in. Additional beneficial properties and a transfer previous $17k might see SOL register beneficial properties as nicely. But, based mostly on SOL’s chart, a shorting alternative was extra evident.
This was due to the confluence of a bearish breaker on the 4-hour timeframe alongside the vary highs at $15. The $14.5-$15 space can be utilized to enter quick positions. Invalidation of this concept could be a four-hour session shut above $15.6. In the meantime, to the south, the $13.15 and $11.3 ranges can be utilized to take revenue.
Futures merchants had been unenthusiastic about SOL breakout prospects
Supply: Coinglass
Since 24 November, the Open Curiosity behind Solana has waned. Although SOL has examined the bearish breaker a number of instances and the value consolidated beneath the $14 mark previously two weeks, OI has declined from $298 million to $217 million.
Within the occasion of a breakout previous $15, the OI would probably see a big transfer upward. This might warn sellers that the bearish winds have shifted.
