Solana [SOL]: Bears break under $20 as sellers look to extend gains

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Dis­claimer: The infor­ma­tion pre­sent­ed does not con­sti­tute finan­cial, invest­ment, trad­ing, or oth­er types of advice and is sole­ly the writer’s opinion.

  • SOL bears look to flip the $20 sup­port lev­el to resistance
  • $1.86 mil­lion worth of long posi­tions liq­ui­dat­ed over the past five days

Solana [SOL] remained on a per­pet­u­al bear­ish slide, despite a recent report high­light­ing increased net­work usage for the alt­coin. The inflow of new users hasn’t had any sig­nif­i­cant impact on SOL’s price. The bear­ish momen­tum saw the price close below the key $20 sup­port lev­el over the past 24 hours.


Read Solana’s [SOL] Price Pre­dic­tion 2023–24


With Bit­coin [BTC] retest­ing the 26k price zone, bears might be tempt­ed to push for more dips. How­ev­er, the bulls could imme­di­ate­ly look to reclaim the $20 sup­port level.

Can bears flip the $20 support level to resistance?

Source: SOL/USDT on Trad­ing View

Pro­longed sell­ing pres­sure has seen Solana lose over 24% of its val­ue in the past month. Price broke through the $22.8 sup­port lev­el on 6 May but bulls put up stiff resis­tance at the next sup­port lev­el of $20.

Despite the bull­ish push­back at $20, recent price action and on-chart indi­ca­tors sug­gest­ed that bears might be win­ning the bat­tle to swing prices lower.

Addi­tion­al­ly, the Rel­a­tive Strength Index (RSI) stayed under the neu­tral 50, since 7 May and stood at 36, as of the time of writ­ing. This showed increased sell­ing pres­sure on SOL. The On-Bal­ance Vol­ume (OBV) also declined by 8.49 mil­lion over the past sev­en days to indi­cate wan­ing demand for SOL.

The 12-hour chart showed a bull­ish can­dle that broke through the $20 sup­port lev­el imme­di­ate­ly after the bear­ish can­dle close. A full bear­ish 12-hour can­dle close under this lev­el for Solana might sig­nal the bears pre­vail­ing and sell­ers could aim for the $18.8 sup­port level.

While the on-chart indi­ca­tors favored the bears, the pre­vi­ous bull­ish ral­ly at the $20 sup­port lev­el could offer buy­ers a fight­ing chance to reclaim the lev­el and push for fur­ther gains. BTC record­ing bull­ish gains in the com­ing days could spur SOL buyers.


Real­is­tic or not, here’s Solana’s [SOL] mar­ket cap in BTC terms


$1.86M worth of SOL longs liquidated in futures market

Source: Coin­glass

Data from Coin­glass over the past five days revealed that liq­ui­da­tion of long posi­tions account­ed for 84.7% of the total liq­ui­da­tions on Solana. This amount­ed to $1.86 mil­lion worth of longs liq­ui­dat­ed com­pared to just $335.76k of shorts.

Shorts also con­tin­ued to slight­ly edge cur­rent posi­tions with a 50.2% advan­tage on the four-hour time­frame. This showed that spec­u­la­tors in the futures mar­ket leaned toward a bear­ish sen­ti­ment on SOL.

Source: Coin­glass

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