Solana (SOL), the star of the crypto world, has seen a decline in momentum as it fell below the support level of $22.4 and the consolidation of the upward order block (OB) in the past 48 hours. This happened after the level failed to withstand selling pressure following the price dropping to the $19 region.
Despite the downward trend, bulls attempted a quick recovery with a 7% gain in the last 12 hours. However, there is a critical obstacle ahead of the upward movement at the new resistance level ($22.4). Can Solana bulls sustain the buying pressure to reverse the recent losses?
The Future of Solana Coin
Solana’s downward trend has seen sellers reversing two significant support levels last month. First, there was a loss of support at $25.3 at the end of July. While bulls defended the $22.4 level, this level succumbed to selling pressure on August 17. The reversal of the latest support level was crucial as it indicated a change in momentum in higher time frames by breaking the previous low level.
Despite bears taking control, market conditions seem to be recovering with Bitcoin trading at $26,000 as of the time of writing. This could help bulls quickly regain the $22.4 price level. On the other hand, if selling pressure persists, a retest of the $22.4 level could offer new short-term gains as sellers target the $18-20 price range.
Meanwhile, a short-term bullish recovery was accompanied by an increase in the Relative Strength Index (RSI) to 43, indicating rising buying pressure. Similarly, the Chaikin Money Flow (CMF) turned positive with a value of +0.06, signaling increased capital inflows.
Solana Coin Analysis
Data from Coinglass showed that sellers have a higher probability of increasing their gains. The long/short ratio revealed that shorts held 52.27% of all open SOL contracts, contrary to the 47.73% held by longs in the 12-hour timeframe.
With a difference of $18 million in open positions, sellers remained confident in continuing the downward trend. However, as an upward trend can reverse the downward trend, investors should actively monitor Bitcoin’s price movements.
