Cryptocurrency

Solana [SOL]: Before you go short, watch out for these factors

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the opinion of the author.

Bitcoin [BTC] confronted intense promoting stress and fell to the $20.8k mark because it skilled a 26% drop in underneath two days. Ethereum [ETH] fared worse and recorded losses of round 30% in the identical time interval. Solana [SOL] was additionally within the grip of the bears, and its construction on the value charts instructed that one other drop might be across the nook. If the bulls can reclaim $32, some respite might be seen, however the extra seemingly consequence stays additional losses for Solana.

SOL- 4H

Source: SOL/USDT on TradingView

The H4 market construction confirmed a robust bearish bias. Since April, the development has been sharply downward, though SOL was capable of maintain on to the $41 assist degree all through May. In June, nevertheless, the value slipped beneath this degree and has since retested the $45 space as a provide zone, and confirmed $41 as resistance, earlier than falling swiftly previously week.

The $32 space (purple field) has additionally been retested as a provide zone, whereas the $26-$27 space has been retested as a requirement zone (cyan field). The Fibonacci extension ranges confirmed that $27.8 might act as momentary assist on the best way south.

SOL- 1H

Short or long on Solana? Here are a few factors to watch out for

Source: SOL/USDT on TradingView

The hourly chart was barely extra sophisticated. The development was nonetheless bearish, however the decrease timeframe market construction was damaged due to the push to $32.3 previously few hours of buying and selling. In dotted white are two ranges that would see SOL set up a spread inside, with the $29.5 space being a short lived demand zone.

However, regardless of this short-term bullish break, the bigger timeframe construction remained bearish. Therefore, it was seemingly that SOL would head again towards the $26 mark, and probably even decrease.

Short or long on Solana? Here are a few factors to watch out for

Source: SOL/USDT on TradingView

The Relative Strength Index (RSI) stood at 49.7, but when the bulls can defend the $29 zone, SOL may nonetheless have the ability to push towards $32 as soon as once more. However, a session shut beneath the cyan field would seemingly see SOL drop towards $26.

The Stochastic RSI shaped a bearish crossover in overbought territory and was headed decrease, whereas the OBV confronted resistance at a degree that was supported only a few days in the past. The promoting stress might power the OBV to drop but once more.

Conclusion

An hourly buying and selling session shut beneath $29 might supply a possibility to enter a scalp brief place, with a stop-loss simply above $30 and take-profit at $26.2. However, if the bulls can defend the $29 space, a revisit to the $32 space might supply shorting alternatives.

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