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SOL could aim for a critical selling pressure zone as BTC aims for $23.3K.
SOL’s development activity improved, boosting investor confidence.
Solana [SOL] fell below the $24.33 level after Bitcoin [BTC] dropped to $22.5K. SOL bulls found a steady foothold at $23.81 and attempted to launch a recovery.
At the time of writing, SOL was valued at $23.92, while BTC struggled to float above the $23K zone. However, BTC could aim for $23.3K and pull SOL into this crucial supply zone.
Read Solana [SOL] Price prediction 2023-24
Can Bulls Try to Reach the Selling Pressure Zone at $25?
Source: SOL/USDT on TradingView
Bitcoin [BTC] dropped to $22.5K but recovered to $23.0K at time of writing. A move to the $23.3K level could lead SOL bulls to target the selling pressure zone (red) at $25 for the next few hours. But bulls need to clear the hurdle at $24.33 to move up.
Alternatively, bears could overwhelm the market and push SOL below the $23.81 immediate support level. Such a drop would invalidate the above bullish bias.
In addition, the Relative Strength Index (RSI) has been below the 50 equilibrium as trading volumes declined, which could give bears more clout to devalue SOL in the near term.
Is your wallet green? look at the SOL Profit Calculator
But such a downtrend could settle at $23.21 and give bulls another chance to recover. Therefore, investors should monitor BTC’s price action to gauge whether bears or bulls will prevail in the coming hours.
SOL’s development activity increased, boosting investor confidence
Source: Sentiment
According to Santiment data, SOL’s development activity registered a further increase at the time of going to press. The increase followed a sharp drop from the previous day, which coincided with a price drop. Therefore, rising development activity could increase SOL’s value in the near term.
In addition, the overall increase in development activity on the network helped improve investor confidence, as evidenced by a pullback of weighted sentiment from the negative territory. Improved investor sentiment could further bolster SOL’s value.
However, trading volumes had fallen significantly and showed no sign of recovery at the time of going to press. As such, it could undermine the trend reversal and strong upside momentum, allowing bulls to evade the $24.33 hurdle. But a bullish BTC could improve trading volumes, so it’s worth following the king coin’s performance.
This post Solana [SOL]: Is a $25 retest likely? Well, only if…
was published first on https://ambcrypto.com/solana-sol-is-a-retest-of-25-area-likely-well-yes-only-if/
