Solana: Can sellers hijack SOL’s latest recovery?

Post­ed: Sep­tem­ber 15, 2023

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

• The dai­ly chart mar­ket struc­ture was bear­ish unless SOL go beyond $20.60
• Mas­sive sell/buy lim­it orders were placed at $20 and $17, respectively. 

Solana [SOL] record­ed an impres­sive recov­ery and was up 4% in the past 24 hours before press time, as per Coin­Mar­ket­Cap. The alt­coin trad­ed at $18.8 at press time, up from the recent low of $17.3, but was still far from the recent high of $20.60. 

Is your port­fo­lio green? Check out the SOL Prof­it Cal­cu­la­tor 

In the mean­time, Bit­coin [BTC] reclaimed its range-low of $25.8k and was fix­at­ed on the mid-range near $27k at the time of writing. 

Will SOL sustain the recovery?

Source: SOL/USDT on TradingView

SOL could clear the dynam­ic resis­tance of the 50 Expo­nen­tial Mov­ing Aver­age (EMA) and edge high­er if BTC retests $27k. It had reclaimed the pre­vi­ous bull­ish order block (OB) of $18.3 – $19.5 (white). 

The imme­di­ate hur­dle was the 50-EMA of $18.81, which could be quick­ly cleared if BTC graces the $27k mark. But bulls could only have an edge if they exceed $20.6 and flip the dai­ly chart’s mar­ket struc­ture bullish. 

Should they fal­ter at the pre­vi­ous high of $20.60, sell­ers could seek mar­ket entry and drop the price low­er to the white area of $18.3 – $19.5 or the recent low of $17.3. 

Such a drop could present a short­ing oppor­tu­ni­ty with an entry at $20. Based on traders ‘ risk appetite, the take-prof­it tar­gets could be $18, $17.75, or $17.3. 

A move beyond $21 will inval­i­date the short idea. But bulls must clear the road­block of $21–22 (red) to push forward. 

Mean­while, the Rel­a­tive Strength Index (RSI) has been in the low­er range since mid-August, under­scor­ing increased sell pres­sure over the same peri­od. Sim­i­lar­ly, the Chaikin Mon­ey Flow (CMF) retreat­ed below zero recent­ly and strug­gled to surge beyond it, demon­strat­ing eased cap­i­tal inflows. 

Massive sell/buy limit orders at $20 and $17

Source: Mobchart

The live order book track­ing plat­form, Mobchart, indi­cat­ed sig­nif­i­cant sell and buy inter­est at $20 and $17 on the four-hour time­frame at press time. As such, we could see a price rever­sal at or near these lev­els. If so, the above short idea’s entry posi­tion at $20 sounds reasonable. 

How much are 1,10,100 SOLs worth today? 

SOL’s move beyond $21 will call for exit­ing the above short posi­tion. So, traders should track BTC move­ment for risk mit­i­ga­tion and opti­mized set-up.