Altcoins

Here’s why Solana’s downtrend is going to be difficult to reverse

Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation

Bitcoin has been in a consolidation part previously month two months, as the worth confronted stiff resistance within the $45k space. On the identical time, Bitcoin has registered larger lows on the day by day chart. Solana is an asset whose value motion might be affected by the course of Bitcoin within the weeks to return. The market construction for Solana has been bearish since early November, with a short rally in early February.

SOL- 1D

Solana on a persistent downtrend- and a move to $100 won't change this

Supply: SOL/USDT on TradingView

The market construction was bearish due to the sequence of decrease highs the worth has set on the charts in latest months. On the identical time, the worth has additionally set decrease lows, and for this, the shut of the day by day candle was thought of.

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It’s because, in a downtrend, the worth can bounce and attain towards the upside looking for liquidity, however rapidly discover itself pressured decrease. Therefore, candlewicks are thought of. The $67-$81 space (cyan field) had acted as a very good demand zone in August, in addition to in latest months. However the bulls might get exhausted if the worth retains testing the identical space repeatedly.

To the upside, the $106 degree and the $115 space might supply important resistance to the worth.

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Rationale

Solana on a persistent downtrend- and a move to $100 won't change this

Supply: SOL/USDT on TradingView

The RSI hauled itself above impartial 50 and retested it as assist previously couple of weeks, one thing it has not been capable of do since mid-December. Even in December, the worth was fast to slump- therefore, if the RSI might keep above 50 for a number of extra days, bulls might take it as a optimistic signal.

The MACD labored below the zero line, though it did type a bullish crossover and snake larger.

The OBV confirmed that purchasing quantity was unable to interrupt previous the February highs, so a transfer previous the orange degree might signify that purchasing quantity was lastly starting to occupy the motive force’s seat. However, the CMF confirmed that capital stream was headed out of the market, and bears had been nonetheless robust.

Conclusion

The symptoms had been considerably conflicting, however on the worth chart, the market construction remained bearish. A transfer previous $106 and a better low registered following that will be the primary signal of a change in longer-term bias for SOL. On the identical time, a push towards $100-$115 might nonetheless grow to be a liquidity seize. Therefore, risk-averse market individuals would wish to see Solana flip the $105 and $120 areas from provide to demand.

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