Cryptocurrency

Solana [SOL] traders going short can take-profit at this level

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

In a earlier article, we explored how essential the $37-$39 space was for the bulls to defend. If the bulls had been in a position to defend this demand zone, a transfer larger might have been on the playing cards for Solana. Yet, the promoting strain behind Bitcoin acted as a catalyst and despatched many main altcoins reeling. Solana had been preventing to interrupt above $42.5. At press time, it gave the impression to be headed again to a assist level the place the rally to $42 had begun.

SOL- 1 Day Chart

Source: SOL/USDT on TradingView

On the each day timeframe, some vital ranges near the value have been marked. The low of May, the swing excessive of June in addition to the swing low, have been all prone to be vital ranges within the weeks to come back. A hidden bearish divergence (orange) developed simply as the value knocked on the $42.5 mark. This signaled a continuation of the previous downtrend, and SOL got here tumbling down in current days.

The swing low of May at $37.37 has acted as assist and resistance over the previous month. It was anticipated that the bulls would try to defend this zone, which was a assist zone on decrease timeframes.

Yet, the value crashed proper by it and bolstered a bearish bias for Solana. Given the truth that Bitcoin additionally confronted promoting strain, it appeared that the route for SOL within the subsequent few days could be southward.

SOL- 2-Hour Chart

Solana unable to hold on to the $37 mark, lack of demand for SOL could drive prices further lower

Source: SOL/USDT on TradingView

The 2-hour chart confirmed the value to slide beneath the 38.2percentretracement level and cruise decrease. The $37.37 was damaged and was not but retested as resistance. The RSI approached oversold territory, whereas the Stochastic RSI was within the oversold area. Hence, a doable bounce towards the $37 space might happen earlier than a subsequent drop in costs.

There can be the potential of a transfer decrease with out a bounce from $33.75. The A/D line has been going decrease and decrease, and the promoting strain might see SOL drop with out a bounce.

Conclusion

The $32 area was space for short positions to take-profit at. A bounce to $37 might supply a great entry. Short positions can use the Supertrend indicators to set a stop-loss. Both the each day and the hourly timeframes confirmed promoting strain behind Solana.

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