- Solana bulls held the $210 support well, but selling pressure was increasing.
- Market structure and momentum favored the bears.
Solana (SOL) bulls defended the $210 support and led the price rebound over the past two days. However, bearish technical indicators had the upper hand. Bitcoin (BTC)’s indecisive price action also did little to help Solana.
A consolidation between the $210-$230 region is expected over the next few days. Another key level was highlighted below $210. A move below this level could cause SOL’s value to decline by another 10%.
Solana bounced 4% from support
On the daily time frame, Solana showed a bearish market structure. This comes after the price hit a series of lower highs over the past two weeks. The March high of $210 was defended over the past two days.
However, the indicators have changed and now reflect bearish pressure. CMF falls below -0.05, indicating significant capital is leaving the market. The Awesome Oscillator also formed a bearish crossover to signal that downward momentum is building.
Bulls are expected to defend Solana’s key $210 support level. Volatility is likely to increase in the short term.
If SOL ends the daily session below $202-$203, it would be a solid indication that more losses are in store. In this scenario, a rise to $180 can be expected.
Volatility is expected to be between $210-$230.
The liquidation map shows that there are highly leveraged long positions ranging from $210.5 to $218. It is highly likely that the price will be reexamined as it is driven by liquidity. There is also significant cumulative leverage north of the $220-$230.3 zone.
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Solana is expected to bounce between the $210 and $230 levels in the coming days before resuming its previous upward trend. If Bitcoin falls below $94,000 and $90,500, the chances of an upward trend will decrease.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.