Despite facing pressure from bears, Solana [SOL] managed to defend the $210 support level and initiated a bounce in its price trajectory. However, technical indicators hinted at a growing bearish sentiment. The market’s lack of clear direction also failed to provide substantial backing to Solana.
In the days ahead, it is anticipated that there will be a period of consolidation within the $210-$230 range. Should the price dip below $210, there is a significant level that could trigger a further 10% decline in SOL’s value.
Solana Shows a 4% Rebound from its Support Level
Examining Solana’s performance on a daily basis, a bearish trend became evident as the cryptocurrency marked a series of lower highs in recent weeks. Nevertheless, the $210 mark held firm over the last couple of days.
Despite this, recent shifts in indicators now paint a bearish picture. The CMF dropped below -0.05, indicating a noticeable outflow of capital from the market. Additionally, the Awesome Oscillator displayed a bearish crossover, signaling the emergence of downward momentum.
It is highly likely that bulls will step in to protect the crucial $210 support level for Solana, potentially leading to increased volatility in the short term.
A sustained daily close below $202-$203 would serve as a clear signal of impending further losses, potentially paving the way for a descent towards $180.
Expect Volatility Within the $210-$230 Range
An analysis of the liquidation map signifies a concentration of high-leverage long positions between $210.5 and $218, suggesting that these levels may act as key areas of interest for price movement. Correspondingly, the $220-$230.3 zone also exhibits a notable sum of cumulative leverage.
It is projected that Solana could oscillate between the $210 and $230 levels in the upcoming days before resuming its previous upward trend. However, the likelihood of a bullish trend waning increases if Bitcoin experiences a drop below $94k and $90.5k.
Disclaimer: The views expressed are personal opinions and do not constitute financial, investment, or trading advice