Disclaimer: The analysis below is the sole opinion of the author and should not be considered investment advice.
- Solana broke below the high liquidity range and showed a strong sell edge while the RSI focused on oversold territory.
- Altcoin funding rates have been trending downward.
Solana’s [SOL] The break below the critical $30 range has resulted in a series of red candlesticks over the past three days. This trajectory highlighted a surge of bearish advantage that was already there.
Click here for AMBCrypto Solana price prediction [SOL] 2023-24
A break below the baseline of $28 exposed SOL to further downside risk, but did not jeopardize its rebound opportunity. Meanwhile, the 20 EMA (red) and 50 EMA (cyan) continue to point south, confirming a selling edge.
At the time of writing, SOL is trading at $27.0675, down 7.53% over the past 24 hours.
SOL has reversed trendline from support to resistance
SOL’s recent U-turn from the $34 ceiling propelled a major pulldown that helped sellers break through the long-term support (now resistance) near the $30 zone. The breakdown of the rising wedge has added fuel to SOL’s bearish fire.
As a result, SOL has swayed below the 20 EMA (red) and 50 EMA (green), indicating a strong bearish edge. Moreover, after engulfing the bearish candlestick, a strong bearish pull was confirmed as SOL broke below the trendline resistance.
A possible break below the $26.3 support could add bearish pressure in the upcoming session. The seller will try to pull the price to the first major support in his $24 zone before a likely bullish rebuttal.
This counter-argument could also present a short selling opportunity targeting the $27-$29 range. That said, a rally from the $26 levels could trigger a sluggish phase.
At the time of writing, the Relative Strength Index (RSI) aimed to retest the oversold mark. The altcoin’s empirical tendency to rebound from this level could sustain hopes of a bullish comeback in the coming sessions.
funding rates began to decline
Funding rate analysis reveals that SOL has reversed from a positive funding rate peak across all exchanges.
Over the eight hour interval, rates on several exchanges, including Binance and FTX, fell into negative zones. Buyers should watch closely for improvements in this area to gauge underlying sentiment.
Finally, investors/traders should keep an eye on Bitcoin trends [BTC] Movements to determine their impact on broader emotions.