Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The $20 price area was a confluence of many resistance levels.
- Demand dipped in the Futures market as sellers gained more control.
Despite Solana’s [SOL] impressive recovery, the overall price action was in a downtrend. The move to a recent high of $20.54, down from $17.3 meant that bulls tucked in +18% gains. However, exceeding the $20 value could become challenging for this reason.
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Should bulls be worried about the $20 hurdle?
On the daily chart, the price action since July chalked a descending channel. The recent recovery from 11 September bounced from the channel’s range-low ($17) and eased slightly at the mid-range before faltering near the range-high.
The retracement at press time could ease at the H12 bullish order block (OB) of $18.3 – $19.5 (white). The OB has a confluence with the mid-range and could ease the reversal if Bitcoin [BTC] doesn’t incur more losses in the midterm.
So, the $16, $17.75, and the mid-range ($18) are key interest levels for buyers.
However, the $20 level is a confluence of resistance levels. At press time, SOL could not exceed $20.60, making the daily timeframe market structure bearish. A bearish OB exists above the range-high and could make exceeding $20 difficult unless BTC rallies.
The Spot market demand influenced the recent recovery
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Author: Benjamin Njiri
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