Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the opinion of the author.
Bitcoin [BTC] confronted intense promoting stress and fell to the $20.8k mark because it skilled a 26% drop in beneath two days. Ethereum [ETH] fared worse and recorded losses of round 30% in the identical time interval. Solana [SOL] was additionally within the grip of the bears, and its construction on the value charts recommended that one other drop might be across the nook. If the bulls can reclaim $32, some respite might be seen, however the extra probably final result stays additional losses for Solana.
SOL- 4H
Source: SOL/USDT on TradingView
The H4 market construction confirmed a robust bearish bias. Since April, the pattern has been sharply downward, though SOL was capable of maintain on to the $41 help stage all through May. In June, nevertheless, the value slipped beneath this stage and has since retested the $45 space as a provide zone, and confirmed $41 as resistance, earlier than falling swiftly up to now week.
The $32 space (pink field) has additionally been retested as a provide zone, whereas the $26-$27 space has been retested as a requirement zone (cyan field). The Fibonacci extension ranges confirmed that $27.8 may act as non permanent help on the best way south.
SOL- 1H
Source: SOL/USDT on TradingView
The hourly chart was barely extra difficult. The pattern was nonetheless bearish, however the decrease timeframe market construction was damaged due to the push to $32.3 up to now few hours of buying and selling. In dotted white are two ranges that would see SOL set up a variety inside, with the $29.5 space being a brief demand zone.
However, regardless of this short-term bullish break, the bigger timeframe construction remained bearish. Therefore, it was probably that SOL would head again towards the $26 mark, and presumably even decrease.
Source: SOL/USDT on TradingView
The Relative Strength Index (RSI) stood at 49.7, but when the bulls can defend the $29 zone, SOL would possibly nonetheless be capable of push towards $32 as soon as once more. However, a session shut beneath the cyan field would probably see SOL drop towards $26.
The Stochastic RSI fashioned a bearish crossover in overbought territory and was headed decrease, whereas the OBV confronted resistance at a stage that was supported just some days in the past. The promoting stress may power the OBV to drop but once more.
Conclusion
An hourly buying and selling session shut beneath $29 may provide a possibility to enter a scalp quick place, with a stop-loss simply above $30 and take-profit at $26.2. However, if the bulls can defend the $29 space, a revisit to the $32 space may provide shorting alternatives.
