Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the opinion of the author.
Bitcoin [BTC] confronted intense promoting stress and fell to the $20.8k mark because it skilled a 26% drop in beneath two days. Ethereum [ETH] fared worse and recorded losses of round 30% in the identical time interval. Solana [SOL] was additionally within the grip of the bears, and its construction on the value charts steered that one other drop may very well be across the nook. If the bulls can reclaim $32, some respite may very well be seen, however the extra doubtless consequence stays additional losses for Solana.
SOL- 4H
Supply: SOL/USDT on TradingView
The H4 market construction confirmed a powerful bearish bias. Since April, the development has been sharply downward, though SOL was in a position to maintain on to the $41 help stage all through Could. In June, nevertheless, the value slipped beneath this stage and has since retested the $45 space as a provide zone, and confirmed $41 as resistance, earlier than falling swiftly up to now week.
The $32 space (crimson field) has additionally been retested as a provide zone, whereas the $26-$27 space has been retested as a requirement zone (cyan field). The Fibonacci extension ranges confirmed that $27.8 may act as momentary help on the way in which south.
SOL- 1H
Supply: SOL/USDT on TradingView
The hourly chart was barely extra difficult. The development was nonetheless bearish, however the decrease timeframe market construction was damaged due to the push to $32.3 up to now few hours of buying and selling. In dotted white are two ranges that might see SOL set up a spread inside, with the $29.5 space being a short lived demand zone.
Nevertheless, regardless of this short-term bullish break, the bigger timeframe construction remained bearish. Due to this fact, it was doubtless that SOL would head again towards the $26 mark, and probably even decrease.
Supply: SOL/USDT on TradingView
The Relative Power Index (RSI) stood at 49.7, but when the bulls can defend the $29 zone, SOL may nonetheless be capable of push towards $32 as soon as once more. Nevertheless, a session shut beneath the cyan field would doubtless see SOL drop towards $26.
The Stochastic RSI shaped a bearish crossover in overbought territory and was headed decrease, whereas the OBV confronted resistance at a stage that was supported only a few days in the past. The promoting stress may drive the OBV to drop but once more.
Conclusion
An hourly buying and selling session shut beneath $29 may provide a possibility to enter a scalp brief place, with a stop-loss simply above $30 and take-profit at $26.2. Nevertheless, if the bulls can defend the $29 space, a revisit to the $32 space may provide shorting alternatives.
