Solana: Can sellers hijack SOL’s latest recovery?

Posted: September 15, 2023

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• The daily chart market structure was bearish unless SOL go beyond $20.60
• Massive sell/buy limit orders were placed at $20 and $17, respectively. 

Solana [SOL] recorded an impressive recovery and was up 4% in the past 24 hours before press time, as per CoinMarketCap. The altcoin traded at $18.8 at press time, up from the recent low of $17.3, but was still far from the recent high of $20.60. 

Is your portfolio green? Check out the SOL Profit Calculator 

In the meantime, Bitcoin [BTC] reclaimed its range-low of $25.8k and was fixated on the mid-range near $27k at the time of writing. 

Will SOL sustain the recovery?

Source: SOL/USDT on TradingView

SOL could clear the dynamic resistance of the 50 Exponential Moving Average (EMA) and edge higher if BTC retests $27k. It had reclaimed the previous bullish order block (OB) of $18.3 – $19.5 (white). 

The immediate hurdle was the 50-EMA of $18.81, which could be quickly cleared if BTC graces the $27k mark. But bulls could only have an edge if they exceed $20.6 and flip the daily chart’s market structure bullish. 

Should they falter at the previous high of $20.60, sellers could seek market entry and drop the price lower to the white area of $18.3 – $19.5 or the recent low of $17.3. 

Such a drop could present a shorting opportunity with an entry at $20. Based on traders ‘ risk appetite, the take-profit targets could be $18, $17.75, or $17.3. 

A move beyond $21 will invalidate the short idea. But bulls must clear the roadblock of $21-22 (red) to push forward. 

Meanwhile, the Relative Strength Index (RSI) has been in the lower range since mid-August, underscoring increased sell pressure over the same period. Similarly, the Chaikin Money Flow (CMF) retreated below zero recently and struggled to surge beyond it, demonstrating eased capital inflows. 

Massive sell/buy limit orders at $20 and $17

Source: Mobchart

The live order book tracking platform, Mobchart, indicated significant sell and buy interest at $20 and $17 on the four-hour timeframe at press time. As such, we could see a price reversal at or near these levels. If so, the above short idea’s entry position at $20 sounds reasonable. 

How much are 1,10,100 SOLs worth today? 

SOL’s move beyond $21 will call for exiting the above short position. So, traders should track BTC movement for risk mitigation and optimized set-up.