Solana
Solana Resistance at $160 Rejected – Will SOL Slide to $120?
- Solana did not see increased buying pressure during its month-long consolidation.
- The rejection at $160 highlighted how crucial this resistance level has been in recent weeks.
Solana [SOL] was forced to retreat from the $160 resistance region again.
An earlier report from AMBCrypto noted that SOL would probably fall back into the one-month range, unless prices can tip the $165-$170 region toward support.
Another report noted that on-chain activity was also in decline. This in turn reflected reduced use and demand for SOL. Therefore, traders can expect the current consolidation to continue.
Will the rejection of the highs of the range see the lows revisited?
Source: SOL/USDT on TradingView
The range (purple) from $156 to $116 has its midpoint at $136. Additionally, the Fibonacci retracement levels at $141 and $122 should also act as support.
The rejection on Monday May 6 was followed by a drop of 10.8%.
At press time, the $141 level provided support, but it was unclear whether it could hold off the bears for the rest of the week.
The RSI on the 12-hour chart has fallen below the neutral 50 level, an early sign of growing bearish momentum.
The MACD showed that the bullish momentum had strengthened, but it quickly reversed over the past 48 hours. At press time, the MACD was neutral but threatened to shift lower.
Traders can expect a slight relief bounce at the $136 intermediate support level. Trading volume has remained steadily low over the past two weeks, and if it continues, a further decline to the $122 level would be likely.
Speculative activity stops
Source: Coinanalyze
While the Solana price has formed a range over the past month, Open Interest has remained relatively stable. It experienced minor declines and rebounds alongside the price oscillation between the extremes of the range.
This indicates a lack of bullish conviction from futures market participants.
Realistic or not, here is Market capitalization of SOL in BTC terms
The CVD spot also formed a range. This is a positive outcome for long-term bulls, as it highlights a period of consolidation. Ideally, buyers want to see the spot CVD trend upward during consolidation.
Given the current uncertainty and fear in the market, it is sufficient that spot CVD has not started a downward trend.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.