Solana [SOL] It presents an attractive buying opportunity that is proportional to the risk-reward, but…

Disclaimer: The information provided does not constitute financial, investment, trading or other types of advice and is the opinion of the author only.

  • Solana is approaching its lows again
  • Low-risk buying opportunity may be imminent

Bitcoin has fluctuated around the $19,000 mark, and Monday’s high and low could be very useful for lower time frame traders to build their biases. The momentum of the crypto king has been bearish lately, although the weekend saw some volatility. Solana [SOL] It faced selling pressure last week as well.

This is the AMBCrypto price prediction for Solana [SOL] year 2022

Dealers can look for a buying opportunity for SOL. This could be because BTC could defend the $19K level, but the resulting bounce could be significant. Technical indicators have painted a bearish picture, and a move to $30 also seems likely.

SOL approaches lower ranges with prolonged apparent invalidation

Source: TradingView

Solana has been trading in a range for the past several weeks. The range is highlighted in yellow, extending from $32 to $34.8, with the midpoint at $33.4. The Relative Strength Index dropped below the neutral 50 level and is showing upside-down momentum. Meanwhile, the Bollinger Bandwidth indicator has also been in a steady downtrend from September. This indicates that the underlying volatility of SOL has been declining.

The directional movement indicator revealed no strong trend in the 6-hour period as the ADX failed to cross the 20 mark. However, with -DI (red) at 26, the trend in recent days is down.

Over the next day or two, a dip to lower levels may provide another buying opportunity. The stop loss could be relatively close to $31.6, targeting the mid-term and local rallies.

Social dominance is near a 3-month low

Solana offers an attractive risk-to-reward buying opportunity, but...

Source: feeling

The measure of social dominance reached its lowest level in three months a few days ago. It fell to 1.05%. Interaction peaked in early October, but apart from that, the scale of dominance remained fairly constant around the 2.5% mark. But in the past week it has dipped and crawled by about 1.4%.

Although NFT related Messages, the size of the NFT has recently decreased. Development activity has also declined since mid-September.

In the event that Bitcoin does not dip below $18.6000 in the coming days, Solana traders can look to place buy orders in the $32 region.

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