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solana [SOL] Slips below the $21 level, could the bulls suffer further losses

Disclaimer: The information presented does not constitute financial, investment, trading or any other form of advice and is the opinion of the author only.

  • 4-hour market structure was bearish
  • Resistance at $21 and $22.6 could be important next week

Bitcoin saw some indecision on the price charts last week. A 25 basis point interest rate hike on March 22 induced volatility but did not break BTC’s uptrend. On the other hand, the 4-hours chart of Solana turned bearish due to the day’s price action.

read Solana [SOL] Price Prediction 2023-24

Solana also saw a drop in NFT activity on its network. On the price chart, even on higher time frame structures such as the daily, it was bearish. This could lead to a further decline in the price towards $19 and $17.7.

Solana Bears Likely To Lower Prices

Source: SOL/USDT on TradingView

The short-term range (yellow) that Solana was trading within last week was lost due to intensification of selling pressure. The structure was already bearish before the price declined below the $21.05 low. At the time of writing, SOL saw a small bounce from $20.15.

A retest of the $21 area could serve as an opportunity to sell the asset. Alternatively, if the price continues to rise, the bearish block orders at $22.6 area could also provide selling opportunities.

It was already acting as a lower time frame bearish stronghold on March 23 when a move up to $23 was quickly rejected. A repetition of this scenario was possible, but less likely.

This was because a move above $21 would shift the lower time frame structure in favor of the bulls. Another 8-9% upside move would be a sign of strong buying pressure, and uncertainty could seep into the lower time frames.

How much is 1, 10, or 100 SOL worth today?

Therefore, a move above $21 will provide some strength to the bulls while a rejection will strengthen the bearish pressure.

At the time of writing, the RSI stood at 43.7 to show neutral to bearish momentum. OBV has declined in last two days but trend was upward for last two weeks. Hence the previous move to $21 cannot be discounted.

Futures market indicated negative sentiment

Source: Coinage

Solana’s Estimated Funding Rate has moved into positive territory over the past few hours. This meant that long positions paid funding fees for short positions, and indicated some bullish sentiment in the market.

Still, the open interest kept moving down along with the price. This was a sign of disappointed longs and indicated bears had the upper hand in the market recently.


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