Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.
- Solana bulls fought desperately to defend the next timeframe help zone.
- A stoop beneath $20 might see one other 15% fall for SOL.
Solana [SOL] noticed a robust wave of promoting in mid-August. This bearish sentiment additionally swept throughout the remainder of the crypto sphere and noticed a plunge in costs. Its NFT area was performing properly. A latest report highlighted a surge in gross sales quantity just a few days in the past. Nonetheless, the sentiment on the value chart leaned in favor of the bears.
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SOL was buying and selling inside the next timeframe space of curiosity. It could be important for the bulls to defend the $20 space and shift the market construction bullish on the decrease timeframes with a transfer previous $22.
A drop beneath $20.2 might see SOL costs fall to $17
![Solana [SOL] exhibits a strong bearish trend as buyers struggle to defend $20](https://statics.ambcrypto.com/wp-content/uploads/2023/08/PP-2-SOL-price-1.png)
Supply: SOL/USDT on TradingView
The$20.26-$22.3 space was highlighted in cyan to demarcate a bullish breaker block from the 1-week timeframe. The 1-day chart confirmed that the market construction has been bearish since early August and that SOL was in a downtrend. The easy shifting averages and the RSI additionally bolstered the concept of bearish momentum.
The DMI confirmed a robust downward pattern on the each day chart with each the -DI (purple) and ADX (yellow) above the 20 mark, which corroborated the inference from the value chart. The OBV has additionally slowly declined over the previous two weeks.
The Fibonacci retracement ranges (pale yellow) confirmed that the 61.8% and 78.6% ranges at $20.18 and $16.94 might function help. Nonetheless, a each day session shut beneath $20.26 would breach the weekly breaker block and sign bearish intent. This might present {that a} transfer to $16.94 was more likely to observe within the coming weeks.
The previous 24 hours noticed bearish sentiment seize management as soon as once more
![Solana [SOL] exhibits a strong bearish trend as buyers struggle to defend $20](https://statics.ambcrypto.com/wp-content/uploads/2023/08/PP-2-SOL-coinalyze.png)
Supply: Coinalyze
On 25 and 26 August, Solana bulls have been in a position to defend the $20.2 help and managed to power a short bounce that reached $20.92. This momentary respite noticed an increase in Open Curiosity, but it surely was short-lived. The OI started to descend as soon as extra alongside costs, which confirmed bearish sentiment and discouraged longs within the close to time period.
How a lot are 1, 10, or 100 SOL price at the moment?
In opposition to this view, the spot CVD has slowly however steadily trended upward since 18 August. There have been hours of intense promoting but it surely appeared demand was creeping in. This fueled bullish hopes {that a} restoration was doable.
A bounce to $20.9 and $22 was the potential short-term bullish scenario- however merchants and traders have to be ready for the bearish state of affairs as properly.
