Solana [SOL]: Bulls out to defend the $21 support – Will they prevail?

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

• Bulls concerted efforts to defend the 61.8% Fib support level of $21.
• The funding rate was positive, but sellers had little leverage based on the long/short ratio.

Solana [SOL] took a cue from Bitcoin [BTC]. It consolidated within the $20 – $22 range as BTC traded within $26.8K – $28.8K in the past few days.

It shows a bullish sentiment as bulls hold on to their position as they anticipate a potential rally. A bullish BTC could tip SOL bulls to target a former price ceiling level. 

Read Solana [SOL] Price Prediction 2023-24

Will the 61.8% Fib level remain steady for bulls?

Source: SOL/USDT on TradingView

SOL plummeted by over 15% after hitting the $23.91 price ceiling. But the $20 support prevented further price dump, boosting bulls to attempt a recovery.

Bears thwarted the recovery, and a retracement saw SOL hit the 50% Fib level ($19.95). At press time, bulls had inflicted another recovery attempt and concerted efforts to keep SOL above the 61.8% Fib level ($20.88). 

If BTC goes beyond $28K and reclaims the $29K price zone, SOL could defend the 61.8% Fib level ($21) support. SOL could move to retest the 76.8% Fib level ($22.21) or the overhead resistance level of $23.91. A hit on the supply zone of $26 could attract increased selling pressure. 

A close below the 61.8% Fib level ($20.88) could also attract another round of selling pressure. But the $20, $19, or $18 support levels could slow the drop. Thus these levels can act as selling targets in the event of a sharp downswing, especially if BTC drops below $28K. 

The RSI (Relative Strength Index) and OBV (On Balance Volume) moved sideways at the time of writing, reinforcing the consolidation phase underway at press time. Since it was a weekend, a more definite price direction could be shaped from Monday (April 3). 

Shorts dominated longs by a small margin

Source: Coinglass

According to Coinglass, the long/short ratio was slightly skewed towards sellers at press time. It means sellers could potentially breach the 61.8% Fib level and attract even more selling pressure. 

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Nevertheless, the funding history has been positive for the past few days, denoting the underlying bullish sentiment. Despite the hopes for a further rally, investors should wait and track BTC price action to make better moves. 

Source: Coinglass