A decline below $23.5 meant that a subsequent decline of 12% was possible.
When it rebounded from $8 to reach $24 in a matter of weeks in January, Solana [SOL] did exceptionally well. This bullish momentum reached a higher period level of resistance at $27 in February before stalling.
SOL failed to surpass $26 in the previous two weeks. Also falling below the $23k barrier, Bitcoin [BTC] found some buyers at the $22.4k level. If BTC drops below $22.3k, it may cause the price of numerous cryptocurrencies to collapse.
The mid-range and a high-volume node exhibit SOL resistance.
According to the Visible Range Volume Profile, the Point of Control (red) was located at $24.3. Since the price was trading below this level, SOL bulls could encounter severe resistance at this level in the days ahead.
Solana’s range’s midpoint from mid-January was likewise $23.53, not far from the high-volume node. Therefore, it was implied that the purchasers faced stiff opposition throughout the whole $23.5–24.3 range.
Purchase of SOL on a bullish response at the range lows of $20.47 would be a solid risk-to-reward move. Buyers may be alerted to a change in momentum by a bullish engulfing pattern or a bullish market structure break on the four-hour chart.
Open Interest backed the notion of pessimism.
Solana attempted the $26 level again as resistance on February 2 and experienced a strong rejection.
Recently, there have been many more long holdings (red) liquidated than short ones during one-hour trading sessions. As the price dropped below the $23 level earlier in the day of writing, close to $1 million worth of long SOL holdings were liquidated. The implication was discouraging longs and increased negative sentiment when combined with the dropping OI.