Bitcoin wobbled around the $19k-mark and Monday’s high and low can be very useful for lower timeframe traders to form their biases around. The momentum for the king of crypto has been bearish recently, although the weekend saw little volatility. Solana [SOL] faced selling pressure over the past week as well.
Traders could watch out for a buying opportunity for SOL. This would hinge on BTC being able to defend the $19k-level, but the resulting bounce could be significant. The technical indicators painted a bearish picture, and a move to $30 seemed to be a possibility as well.
Solana has traded within a range in recent weeks. Highlighted in yellow, the range extended from $32 to $34.8, with the mid-point at $33.4. The RSI indicator fell below neutral 50 and showed bearish momentum on the rise. Meanwhile, the Bollinger bands width indicator was also on a steady downtrend from September. This suggested that the volatility behind SOL has been on a decline.
The Directional Movement Index revealed the lack of a strong trend on the 6-hour timeframe as the ADX was not able to push past the 20-mark. And yet, with the -DI (red) at 26, the trend of the past few days has been downward.
In the next day or two, a dip to the range lows could offer another buying opportunity. The stop-loss can be relatively close at $31.6, targeting the mid-range and local highs.
The Social Dominance metric crept to a three-month low a few days ago. It fell to as low as 1.05%. Engagement saw a peak in early October, but apart from that, the dominance metric has been rather flat around the 2.5%-mark. However, over the past week, it took a nosedive and crept around 1.4%.
Despite the NFT-related announcements, NFT volume has fallen recently. Development activity has also been on a decline since mid-September.
In the event Bitcoin does not slip below $18.6k in the coming days, Solana traders can look to set buy orders in the $32-region.
Source : ambcrypto
