Solana [SOL] Consolidates Within $20 – $22 Range Amidst Bullish Sentiment
Solana [SOL] has been closely following the movements of Bitcoin [BTC], as it continues to consolidate within the $20 – $22 range, while BTC trades within the $26.8K – $28.8K range in recent days. Despite this consolidation, there is a prevailing bullish sentiment as bulls hold on to their positions, anticipating a potential rally. A bullish BTC could potentially tip SOL bulls to target a former price ceiling level.
Will the 61.8% Fib Level Hold Steady for Bulls?
SOL experienced a drop of over 15% after hitting the $23.91 price ceiling. However, the $20 support prevented further price dump, boosting bulls to attempt a recovery. Bears thwarted the recovery, leading to a retracement that saw SOL hit the 50% Fib level at $19.95. At press time, bulls had made another recovery attempt, making concerted efforts to keep SOL above the 61.8% Fib level at $20.88.
If BTC goes beyond $28K and reclaims the $29K price zone, SOL could defend the 61.8% Fib level at $21 as support. This could potentially lead to SOL retesting the 76.8% Fib level at $22.21 or the overhead resistance level of $23.91. However, if SOL hits the supply zone of $26, increased selling pressure could be expected.
A close below the 61.8% Fib level at $20.88 could attract another round of selling pressure. However, the $20, $19, or $18 support levels could slow the drop, acting as selling targets in the event of a sharp downswing, especially if BTC drops below $28K.
RSI and OBV Indicate Sideways Movement
The RSI (Relative Strength Index) and OBV (On Balance Volume) are moving sideways at the time of writing, reinforcing the consolidation phase underway at press time. Since it is the weekend, a more definite price direction could be shaped from Monday (April 3).
Long/Short Ratio Skewed Towards Sellers
According to Coinglass, the long/short ratio is slightly skewed towards sellers at press time, indicating that sellers could potentially breach the 61.8% Fib level and attract even more selling pressure.
Positive Funding History with Caution for Investors
Nevertheless, the funding history has been positive for the past few days, denoting the underlying bullish sentiment. Despite the hopes for a further rally, investors should exercise caution and track BTC price action to make informed decisions.
- SOL has been consolidating within the $20 – $22 range, following BTC’s movements.
- Bulls are attempting to hold SOL above the 61.8% Fib level at $20.88.
- If BTC goes beyond $28K, SOL could potentially retest higher resistance levels.
- RSI and OBV indicate sideways movement, with a more definite price direction expected on Monday.
- Long/Short ratio is skewed towards sellers, indicating potential selling pressure.
- Despite positive funding history, investors should exercise caution and monitor BTC price action.
