Solana (SOL) has been showing signs of growth since mid-September. Even the recent losses that pushed SOL bulls to a decline of $25 seem not to be enough to disrupt the cryptocurrency’s trend. The blockchain network has performed well in terms of technological advancements and increasing partnership numbers during the consolidation period in 2023.
According to a recent price analysis, the $22 price level is a critical point for the future of SOL. This region is crucial for the bulls to defend the upward movement. However, the upward movement did not occur as the bulls desired, and the $22 level was tested as resistance again on October 12. During this process, there were two points that investors could consider.
Current Status of Solana Price
When the two-hour price chart is examined, it indicates that the Solana price is in a downward trend within the current time frame. Furthermore, the $21.5 and $21.84 price levels were considered as support zones on Monday (October 9), but these critical points turned into resistance on October 12.
Relative Strength Index (RSI) has been below the neutral 50 level since October 8, and On-Balance Volume (OBV), which investors closely monitor, has been in a downward trend for the past ten days. This indicates that the selling volume is relatively stable and more dominant than the buying volume that investors can generate. Considering the conversion of $21.5 into resistance, it is likely that SOL may move to even lower levels.
Considering the $20.2 support level that emerged at the end of August, investors can consider short positions after a possible retest in the $21.5 region. $21.13 and $20.6 are also support levels that can temporarily halt the downward movement.
Will Solana Price Rise?
Shortly before the time of writing, it was observed that SOL found support at the $21.13 level. This can be considered as a small bounce in SOL’s price. However, Open Interest (OI) was experiencing a decrease at the time of writing.
Whether a decline towards the resistance level of $21.6 will occur or not still remains uncertain. If this happens, it can be attributed to a potential volatility in the futures market.
