Altcoins

Solana [SOL] traders going short can take-profit at this level

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the opinion of the author.

In a earlier article, we explored how essential the $37-$39 space was for the bulls to defend. If the bulls had been in a position to defend this demand zone, a transfer greater may have been on the playing cards for Solana. But, the promoting strain behind Bitcoin acted as a catalyst and despatched many main altcoins reeling. Solana had been preventing to interrupt above $42.5. At press time, it seemed to be headed again to a assist stage the place the rally to $42 had begun.

SOL- 1 Day Chart

Solana unable to hold on to the $37 mark, lack of demand for SOL could drive prices further lower

Supply: SOL/USDT on TradingView

On the every day timeframe, some vital ranges near the worth had been marked. The low of Might, the swing excessive of June in addition to the swing low, had been all more likely to be vital ranges within the weeks to come back. A hidden bearish divergence (orange) developed simply as the worth knocked on the $42.5 mark. This signaled a continuation of the previous downtrend, and SOL got here tumbling down in current days.

The swing low of Might at $37.37 has acted as assist and resistance over the previous month. It was anticipated that the bulls would try to defend this zone, which was a assist zone on decrease timeframes.

But, the worth crashed proper by it and bolstered a bearish bias for Solana. Given the truth that Bitcoin additionally confronted promoting strain, it appeared that the route for SOL within the subsequent few days can be southward.

SOL- 2-Hour Chart

Solana unable to hold on to the $37 mark, lack of demand for SOL could drive prices further lower

Supply: SOL/USDT on TradingView

The two-hour chart confirmed the worth to slide beneath the 38.2percentretracement stage and cruise decrease. The $37.37 was damaged and was not but retested as resistance. The RSI approached oversold territory, whereas the Stochastic RSI was within the oversold area. Therefore, a doable bounce towards the $37 space may happen earlier than a subsequent drop in costs.

There may be additionally the opportunity of a transfer decrease with no bounce from $33.75. The A/D line has been going decrease and decrease, and the promoting strain may see SOL drop with no bounce.

Conclusion

The $32 area was space for brief positions to take-profit at. A bounce to $37 may supply a super entry. Quick positions can use the Supertrend indicators to set a stop-loss. Each the every day and the hourly timeframes confirmed promoting strain behind Solana.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button