- Solana has a strongly bearish market structure on the lower time frames.
- The 78.6% Fibonacci level has been bravely defended – but for how much longer?
Solana [SOL] didn’t have much positive news in terms of price action. It was rejected due to an imbalance in a higher time frame of $160 and has entered a range formation.
This range extended from $156 to $116.3. The technical indicators had a bearish bias. A recent AMBCrypto report also highlighted the fate of the Open Interest behind SOL, and its bearish implications.
The mid-range was now resistance
Source: SOL/USDT on TradingView
The range (purple) has an average value of $136.6. At the time of writing, SOL was trading at $129.1. It looked like it would go to mid-level as a retest and will likely be rejected in the next few hours.
The RSI remained below the neutral 50 on the 12-hour chart. The reading of 40.57 showed bearish momentum. The OBV was in a slow downward trend in the second half of April. In the past two days, the price has rebounded from the mid-April low.
If this OBV support breaks, it would indicate that SOL sellers are gaining strength. This could be enough to push prices below the low of $116. The Solana price prediction based on the internal structure highlighted that $122 was a crucial support level.
The next magnetic zone could wipe out all bullish hopes
Market sentiment was already frightening. The move to $116 on April 13 and the subsequent rebound showed that liquidity had already been swept near $120.
Read Solana’s [SOL] Price forecast 2024-25
Right now the next sizable liquidity pool is $100. To the north, the $160 and $145 levels were the resistances to watch.
Given the findings from the price action and technical indicators, a move towards $100 or $92 would not be surprising.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer.