Bulls lose their grip on the market as prices dip below the $103.4 level.
Edited By: Saman Waris
- Solana saw the market structure favor the sellers once again.
- The liquidity pockets to the south would likely attract prices.
Solana [SOL] noted negative market sentiment over the past week, AMBCrypto reported.
Such setbacks were expected to provide a good buying opportunity, but the recent price action supported a bearish bias on the 12-hour timeframe.
With this development, more losses are expected over the next week or two. The $90 region is a strong demand zone, but it is also the place where the bulls might have to make a last stand.
The bearish market structure break
The second half of February saw the bulls lose their grip on the market. The 12-hour chart formed a higher low at $103.4, but SOL prices dropped below it on the 21st of February.
The RSI also sank below neutral 50 to signal bearish momentum was stronger.
The OBV also formed a range over the past two months. The tug-of-war between the buyers and sellers has been relatively evenly poised. Therefore, the $116-$126 resistance is key to the next uptrend.
Meanwhile, the Fibonacci retracement levels (pale yellow) showed that $94.16 and $87.49 were support levels where bulls could reverse lower timeframe downtrends.
Studying the liquidation heatmap for further clues
AMBCrypto noted that the $91.34 and $92.36 levels had $4.5 billion and $6.6 billion in estimated liquidations. They also had confluence with the Fibonacci retracement levels.
Therefore, it was highly likely that a sweep of the $87-$92 area was coming.
Realistic or not, here’s SOL’s market cap in BTC’s terms
It is unclear when such a move would materialize, but traders must be ready to capitalize on it. Given the trend of Solana since last October, a continuation upward is expected.
However, a fall below $85 would indicate that the bears have the upper hand. In that scenario, swing traders should exercise caution and avoid buying SOL until an uptrend is established once more.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
