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Solana’s (SOL) price has been stuck in a consolidation phase below the $150 level for over a week, following a sharp drop in early August. This bearish trend is further exacerbated by the recent withdrawal of U.S. spot SOL ETF filings.
The $150 level has proven to be a significant resistance zone for SOL, acting as both a short-term sell pressure and aligning with the 200-day Simple Moving Average (SMA) and a daily breaker block. This confluence of factors has made it a critical supply zone, particularly for long-term holders looking to take profits.
The sideways movement of the Relative Strength Index (RSI) below average levels indicates a lack of demand and further reinforces the sellers’ advantage. Additionally, the Cumulative Volume Delta (CVD), which tracks buy vs. sell volume across exchanges, has been declining, suggesting that SOL has been under significant sell-side pressure.
Open Interest (OI) rates for SOL have remained flat, indicating a neutral market sentiment and the possibility of price movement in either direction. However, unless Bitcoin (BTC) can reclaim the $60K level and rally further, the $150 level will continue to be a crucial hurdle for SOL to overcome in the short term.
Also Read: Solana Price Drops 15% – Will SOL Slip Below $130 After Recent Bearish Indicators?
According to Coinglass’ whale order analysis, there are significant sell orders placed around the $150 level, reinforcing its role as a supply zone. On the lower side, a buy order is placed between $139 and $140, suggesting that SOL’s price may be constrained within a narrow range of $140 to $150 in the near future.
Solana’s price is currently facing headwinds from both technical indicators and market sentiment. The $150 level remains a significant resistance zone, and unless there is a broader market recovery or a shift in sentiment, it is likely that SOL will continue to consolidate or potentially experience further downside pressure.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
