Solana’s Market Dynamics: Understanding the Recent Movements

• Solana’s price struggled to defend the $22 mark, sliding into a bearish trend.
• Recent developments highlight strong support for Solana tokens, including stablecoins like USDC.

Blockchain giant, Solana, has witnessed some intriguing price actions recently. Even though there’s been a notable uptick in the overall support for Solana tokens, with mentions of growing endorsements from platforms like OKX, as referred in a recent tweet by Solana, the price faced challenges.

Growing support for Solana tokens and stablecoins like USDC from @okx

https://t.co/SJulEaKmlE

— Solana (@solana) October 12, 2023

Key Price Levels and Indicators

The buzz around Solana took a downturn when the bullish trend struggled to maintain above the $25 mark. An analysis had highlighted the importance of the $22 support level. However, instead of fortifying this benchmark, the SOL token saw this price level turn into a resistance on 12 October. Two primary focal points emerged for traders:

• The $21.5 marker that once served as support was now under the scanner for a potential downward retest.
• The market sentiment surrounding a potential bounce back to $21.6 was wavering.

Diving deeper into the technical charts, Solana’s two-hour chart painted a decisively bearish picture. What’s noteworthy is that a previous support zone ranging between $21.5-$21.84, identified on 9 October, flipped into resistance just three days later. Furthermore, the Relative Strength Index (RSI) has hovered below the neutral 50 since 8 October. Such indicators, coupled with the On-Balance Volume (OBV) showcasing a 10-day downtrend, indicated that selling volumes were surpassing buying volumes.

With these shifts, speculations were rife about Solana possibly trending further downwards, eyeing the $20.2 support zone from late August. Other supporting levels, like $21.13 and $20.6, were also discussed as potential halts to this bearish trend.

Market Sentiments and Predictions

Pre-release hours saw SOL clutching to the $21.13 support, hinting at a possible minor rebound. Yet, with the Open Interest (OI) on a decline, the resurgence to the $21.6 resistance, if any, appeared to be propelled majorly by the futures market.

Furthermore, the spot market, which usually offers clear conviction, showed Solana’s spot Cumulative Volume Delta (CVD) spiraling downwards since 8 October. This only intensified the anticipations of SOL hitting the $20.2 support zone imminently.

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