Solana: Is this demand zone the key to sustaining bullish uptrend?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Demand zone at key price level could be significant in reversing bearish slide.
- Funding rate remained positive to encourage buyers.
As of press time, Solana [SOL] continued to face increasing selling pressure. This saw the altcoin dip to the support level around the $22 price zone. As such, a successful defense of the $22.4 support level could be key to bulls holding onto their upward momentum.
Read Solana’s [SOL] Price Prediction 2023-24
Meanwhile, market conditions continued to flash mixed signals with Bitcoin [BTC] ranging between $28.9k and $29.4k
Key support level presents new buying opportunity for bulls to reverse bearish slide
Source: SOL/USDT on Trading View
Solana’s strong bullish rally lost steam around the $30 – $32 price level. This afforded sellers an entry point on the higher timeframes from the $29 resistance level.
The current choppy market conditions have been favorable for SOL bears with price making a series of lower highs. However, prices have hovered over a key support level over the past 48 hours with bulls looking to reverse the recent losses.
Bulls have precedent for strong buying power from the current support level, as seen on 13 July. This support level also doubles as a significant demand zone. Therefore, buyers can look to bid SOL from this price level with profit targets at $25 – $28.
Alternatively, if bears break this support level, it will flip Solana’s market structure bearish. Sellers can target $18 – $20 as near-term targets.
In the meantime, the RSI remained under neutral 50 while the OBV continued its slow decline. Both indicators were in support of a bearish extension, as of press time.
Realistic or not, here’s SOL’s market cap in BTC terms
Positive Funding Rate could aid bullish reversal
Source: Coinglass
A look at the funding rate data on Coinglass showed that despite the price retracement, Solana’s funding rate has remained largely positive since its significant run-up to $32.
This could be helpful to bulls, as they bid to stem the bearish slide and continue SOL’s upward trend.
