Solana Analysis
On the daily chart, SOL’s price movement has formed a descending channel since July. The recent recovery on September 11th bounced off the channel’s lowest level ($17) and eased slightly in the mid-range, pausing near the high range.
Currently, there is a pullback that could lose its strength within the 12-hour bullish order block (OB) ranging between $18.3 and $19.5 (white). This area could also coincide with the mid-range of the OB, potentially facilitating a price reversal, provided Bitcoin (BTC) doesn’t experience further losses in the medium term. Hence, keep an eye on key interest levels like $16, $17.75, and the mid-range ($18) for potential buyer activity.
However, it’s essential to note that the $20 level presents significant resistance levels. At the time of writing, SOL had not surpassed $20.60, and the daily timeframe has turned the market structure bearish. A bearish OB above the December high may pose challenges for SOL to breach $20, unless BTC stages a recovery.
Observing the On-Balance Volume (OBV), it appears that spot market demand has influenced the recent recovery. However, the Chaikin Money Flow (CMF) and Relative Strength Index (RSI) have shown signs of stalling near critical threshold levels, suggesting a decrease in buying pressure and an inflow of funds.
The Future of Solana
Looking at the Cumulative Volume Delta (CVD), it seems that sellers have gained more control over the market due to the prolonged decline. Additionally, the Open Interest rate has decreased, indicating a slight decrease in demand.
Furthermore, the negative Accumulation Swing Index (ASI) emphasizes that SOL’s price movement is in a long-term downtrend. ASI tracks the strength of price fluctuations, and a negative reading indicates that sellers are gaining more strength, especially on higher timeframe charts.
