Solana has performed firmly bullishly over the past month but saw a change in momentum, and a retracement to this demand zone is likely.
Such setbacks were expected to provide a good buying opportunity, but the recent price action supported a bearish bias on the 12-hour timeframe.
With this development, more losses are expected over the next week or two. The $90 region is a strong demand zone, but it is also the place where the bulls might have to make a last stand.The second half of February saw the bulls lose their grip on the market. The 12-hour chart formed a higher low at $103.4, but SOL prices dropped below it on the 21st of February.The OBV also formed a range over the past two months. The tug-of-war between the buyers and sellers has been relatively evenly poised.
Meanwhile, the Fibonacci retracement levels showed that $94.16 and $87.49 were support levels where bulls could reverse lower timeframe downtrends.AMBCrypto noted that the $91.34 and $92.36 levels had $4.5 billion and $6.6 billion in estimated liquidations. They also had confluence with the Fibonacci retracement levels.It is unclear when such a move would materialize, but traders must be ready to capitalize on it. Given the trend of Solana since last October, a continuation upward is expected.
However, a fall below $85 would indicate that the bears have the upper hand. In that scenario, swing traders should exercise caution and avoid buying SOL until an uptrend is established once more. Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.Akashnath is a Chemical Engineering graduate deeply fascinated by Technical Analysis and the crypto markets and enjoys studying price movements and trying to find patterns.Subscribe to get it daily in your inbox.
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