Solana’s bulls successfully held the $210 support level for the past 48 hours, sparking a minor price recovery. However, the technical signals indicated a growing bearish sentiment, while Bitcoin’s price behavior offered limited assistance to Solana.
Market analysts predict a period of price consolidation within the $210-$230 range for the next few days. A breach below $210 could mark a critical support breach, potentially leading to a further 10% decline in SOL’s value.
Solana Demonstrates 4% Recovery from Support
Examining the daily chart, a bearish trend emerged in Solana’s market dynamics, characterized by a series of lower highs observed in the last fortnight. Notably, the $210 levels, reached in March, were successfully defended in recent sessions.
Despite the recent bounce, the indicators show a shift towards bearish momentum. The Chaikin Money Flow (CMF) dropped below -0.05, indicating a substantial outflow of capital. Concurrently, the Awesome Oscillator signaled a bearish crossover, suggesting a potential downward trend.
Market sentiment suggests that the $210 support is likely to be robustly protected by the bulls, indicating heightened short-term volatility ahead.
A close below the $202-$203 range in a daily session may signal further losses, potentially leading to a decline towards $180.
Anticipated Price Swings Between $210 and $230
An analysis of the liquidation map highlights a cluster of highly leveraged long positions spanning from $210.5 to $218. These price levels could attract trading activity as market liquidity plays a significant role. Conversely, the $220-$230.3 zone reflects a considerable accumulation of leverage.
It is expected that Solana will oscillate within the $210-$230 range in the days ahead before potential resumption of its bullish trend. However, a significant downturn in Bitcoin, dropping below $94k and $90.5k, could dampen the prospects of an immediate uptrend.
Disclaimer: The opinions expressed in this article do not constitute financial advice; they reflect the writer’s personal views.