Solana: Seeking buying opportunities? Consider these levels

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

• SOL’s 4-hour timeframe was bearish at the time of writing.
• The token’s buying volumes declined at the range-high of $16.11.

Solana [SOL] has been constricted in a range formation since 10 June. The corrective bounce from the $14.4 range low from 16 June received a double boost. The initial boost was from Bitcoin’s [BTC] upswing and, second, Solana’s impressive NFT performance. 

Is your portfolio green? Check out the SOL Profit Calculator 

But the price action has hit the range-high of $16.11 at the time of writing. On the other hand, BTC focused on $27k, but if bulls falter, SOL could retrace to these levels. 

Can bulls clear the range-high hurdle?

Source: SOL/USDT on TradingView

The RSI (Relative Strength Index) was above the 50-mark at press time but registered a downtick. It showed recent buying pressure eased after SOL hit the range-high of $16.11. Similarly, the Accumulation/Distribution retraced slightly, showing a pause in accumulation. 

If BTC cannot cross $27k, SOL could retrace to the mid-range of $15.24 or range low of $14.4. Notably, the mid-range had rescued the bulls once before. Below lies a key resistance level of November/December 2022, at $14.93. 

So, a likely rebound from the $14.93 – $15.24 could offer a new buying opportunity. Alternatively, a retest on the breakout level at the range-high of $16.11, especially if BTC crosses $27k, could offer secondary buying opportunities, targeting $17.33 (near the March swing low). 

Buying volumes eased

Source: Coinalyze

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

The CVD (Cumulative Volume Delta), which tracks buying and selling volumes and overall sentiment, improved on the 1-hour chart from 18 June. But the metric moved sideways at press time, indicating buying pressure eased. 

Similarly, the open interest (OI) rates fluctuated narrowly below $160 million. A decline in the OI will indicate increasing bearish sentiment and likely retest of the mid-range level of $14.93 – $15.24. But a bullish BTC (above $27k) will invalidate the thesis.