Solana (SOL) bulls in Solana have witnessed a decrease in selling pressure and a momentary relief in the past few days. Following the echoes of the FTX uncertainty last week, there was a jump of nearly 20% in prices.
A recent statement highlighted the impact of social media comments and interactions on the price of cryptocurrencies. Although SOL reflected short-term upward strength, market sensitivity did not show a definite rise at the time of writing.
The rise from $12.8 to $32.13 in June and July indicated a series of Fibonacci correction levels (pale yellow). In the past ten days, the lowest level SOL reached before the buying pressure reflected in prices was $17.33.
After that, the support level did not encounter a test, and there is the potential for a pullback to this level due to a short-term resistance in mid-June. The daily market structure seemed to continue the downward trend as SOL needed to surpass the $20.6 level to initiate an upward movement.
Relative Strength Index (RSI) was just above the neutral 50, indicating a possible change in price structure. On-Balance Volume (OBV) crossed above the resistance in September, reflecting an increase in buying power. A move above $20.6 and a retest could create a buying opportunity targeting $25.4 and $27.5.
Open Interest rate experienced a decrease in the past 24 hours, and the spot Cumulative Volume Delta (CVD) also declined. During this period, Solana traded at the $20 level and faced resistance at $20.6. The funding rate indicated a negative view, emphasizing the majority of short positions.
The falling OI below a resistance zone indicated that Solana bulls were not confident in the upward momentum. The declining spot CVD highlighted strong selling pressure. Therefore, short-term sentiment reflected a downward trend, and SOL may experience a minor pullback from $20 before rising.