Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
The bulls failed to secure the $26.85 breakout level.
Open interest rates fell and more long positions went down.
from Solana [SOL] pullback extended ahead of Fed interest rate decision on July 25/26. Following Ripple Labs’ legal victory, SOL graced a new 2023 high of $32. However, the party went by quickly after that and SOL reclaimed some of the gains amid a pullback.
Is your wallet green? look at the SOL Profit Calculator
Will the 50% Fib Stop Sellers?
Fibonacci retracement levels (yellow) were plotted between the recent high of $32 and the mid-June swing low of $12.8. At the time of writing, Solana price action had retreated to the $24 level. Based on the Fib tool, the 50% Fib level at $22.5 was the next major support level after the $24.
In addition, the 50% Fib level also coincided with the June highs; therefore bulls are expected to defend defenses in the area if the retreat is lower. If the decline eases into the $22.5 – $24 area, bulls can target again at $30, but they will have to get around the $26.5 hurdle to move forward.
But the drop below the 50% Fib level will further weaken SOL’s market. Such extended bearish overdrive could lead SOL to retest the $20 psychological barrier, especially if BTC takes huge losses after the Fed decision.
Meanwhile, the Relative Strength Index and On Balance Volume fell lower, suggesting a decline in buying pressure and demand over the past few days.
Open interest also fell
Falling Open Interest (OI) rates further confirmed the bearish grip. SOL’s OI is moving south after peaking in mid-July.
How many Worth 1,10,100 SOL today?
Between mid-July and the time of writing, SOL’s OI fell from >$400 million to less than $350 million, highlighting declining demand for SOL in the futures market prior to the Fed decision.
So there could be a further pullback, and the $24 could break, forcing the bulls to regroup at the June high and the 50% Fib level of $22.5.
This post Are Solana Bears Moving?
was published first on https://ambcrypto.com/are-solana-bears-on-the-move/