SOL bulls are trying to capture $10.15 but bearish momentum might take over. Here’s why

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

  • Solana’s drop below $9.6 could cause a panic in the market
  • Solana’s open interest also showed bearish signs

bitcoin [BTC] It fell below the $16.6000 support again but did not indicate a trend development. Solana [SOL] It recovered a support area that extended from USD 9.7 to USD 9.9. In addition, technical indicators showed some bullish momentum in the short term.

An 86.33x increase is on the cards if SOL reaches bitcoin’s market cap?

A drop below $9.6 may trigger fear in the Solana market again, and lead to another wave of selling in the coming days.

$10.16 and $9.68 are the short-term levels to watch out for

Source: SOL/USDT on TradingView

On December 28, Solana broke down to test the $9.93 level as support. It was able to rebound to $10.16 and even reached $10.38 on the same day. The price action that day showed that the sellers were in control of the $10 area. Solana fell to $8 on December 30th.

Immediately after that retraction, Solana buyers went ballistic after one Tweet Vitalik A large number of short positions have been liquidated. In recent days, the price failed to cross the $10.16 mark.

Although the Relative Strength Index (RSI) rose above the neutral 50 level, the result was not a bullish recovery, but rather some short-term bullish momentum.

On Balance Trading Volume (OBV) has also increased in recent days. Solana is facing massive selling pressure in the $10-15 range, as well as the $10.76-$11.11 range. Lower time frame traders can look to buy if $10.16 turns into support, with a target of $10.75.

On the other hand, a dip below the $9.6-$9.7 range is likely to send SOL down to $8 or lower in the next week.

An increase in open interest indicates that money has been flowing into the market

Solana is trying to break above $10, but resistance has prevailed so far

Source: Coinalyze

Open interest started to rise after the price breached the $9.9 support level, which indicates a strong downtrend. The massive short squeeze that brought SOL back to $10.8 cleared out short positions for nearly $3 million in a single four-hour candle.

Are your SOL holdings flashing green? Check out the profit calculator

After this event, open interest rates increased further while the price crept weakly towards $10.15. It was not clear whether short positions entered the market or if the bulls had some influence.

The buy/sell ratio showed that the sellers had a slight advantage. A drop below $9.6 could discourage the bulls again, forcing them to close long positions and increase selling pressure.

Leave a Reply

Your email address will not be published. Required fields are marked *