SOL Price Analysis: Key Support Levels
If you’re a seller eyeing a potential downturn for SOL, it’s important to take note of the substantial buying interest in the $18-$19 price range.
SOL recently retraced to a crucial bullish order block located near the $18 mark.
MobChart data highlights the presence of massive buy limit orders at both $18 and $19.
Solana (SOL) breached the psychologically significant $20 level, but the downward movement may be mitigated by the increased buying interest observed in the $18 and $19 price zones. However, it’s worth noting that Bitcoin (BTC) is currently trading within a range-low around $25,000, which could potentially complicate SOL’s path to a solid upward move.
Can Bulls Defend the $18-$19 Range?
The $20 level has historically served as crucial support during various points in April, May, and the end of August. Unfortunately, it was breached in September. Nevertheless, the price drop has reached a daily bullish order block (OB) spanning from $18.3 to $19.5 (depicted in white).
If demand surges within this bullish OB, SOL may set its sights on reaching $22 or the 50% Fibonacci level at $22.5 within the next few days.
Conversely, sellers have the potential to drive SOL lower towards the 23.6% Fibonacci level at $17.4 or the next daily bullish OB ranging from $15.6 to $16.65 (colored cyan).
Indicators: RSI and CMF
Over the past few days, the Relative Strength Index (RSI) has oscillated below the 50 level, indicating relatively balanced buying and selling pressure in the market.
Similarly, the Chaikin Money Flow (CMF) has exhibited fluctuations around the zero mark, suggesting that capital inflows and outflows have been wavering during the same period.
Massive Buying Interest at $18-$19
On MobChart, a real-time order tracking platform, a substantial amount of buying interest has been identified at the $18 and $19 price levels. Notably, large buy limit orders have been placed at these levels on the Binance Exchange, as indicated by the green lines. This could potentially lead to a price bounce from these levels.
Conversely, on the sell side, significant sell limit orders have been positioned at the $22 level on the 4-hour timeframe. This suggests that a price reversal may be in the cards when SOL approaches the $22 threshold.
Therefore, if BTC manages to hold its range-low position, SOL may have the opportunity to target $22 or the 50% Fibonacci level at $22.5. However, it’s important for bulls to overcome the $20.2 obstacle (38.2% Fibonacci level) to facilitate such an upward move.