- Solana acts under a crucial support zone and from here the price can move in both directions.
- Given the market context, is a deeper pullback afterwards, or will the bulls grab the dip?
After throwing out 5% of its market value, Solana [SOL] In the vicinity of a critical support zone-one that has fueled historically strong rebounds in the direction of the range of $ 250- $ 260 – an increase of 35% compared to its current price.
Source: TradingView (SOL/USDT)
Historically, this support zone has fueled strong rebounds and with a volume of 65%, now more than $ 2 billion, traders can expect a repeat.
In addition, the SOL/BTC pair reflects a similar pattern of the last cycle, when a bullish reversal Solana pushed by 65% to $ 270 in just two weeks. But don’t forget – the hype of the Trump Memecoin launch played an enormous role and led to an increase of 19% in Solana.
So, while a rebound of 35% could be useful with the consolidation of Bitcoin, the Altcoin sees -related and a strong volume that it supports. But let’s really be – it’s still too early to call.
It must be noted whether the market browses into a solid bottom before both retail and speculative capital dive headfirst in the ‘dip’.
Solana at Crossroads: rebound or going backwards?
At the time of writing, Solana saw a strong purchase interest in the futures market, with open interest (OI) an increase of 8.37% at $ 5.85 billion.
More than $ 14 million in longs were liquidated within 24 hours, in accordance with the decrease of 2.65% of SOL. Despite the liquidations, Solana is far from the delivery. Traders take high risks, betting on a potential rebound.
However, as Ambcrypto notes, this strategy can be counterproductive if Spothandel does not come to the fore. Binance -Details show three consecutive days of sales orders.
Unless this shifts to green, a bottom of $ 180 might be difficult to touch. A pullback to $ 160 is more likely if long squeezing is not kept under control.
Source: Binance
With a high risk sentiment that runs through the derivatives market, caution is crucial.
While the buzz from around 35% rebound to $ 250 spreads on social media, the reality suggests more days of heavy liquidations.
Traders run the risk of losing millions, so that every rebound for Solana is still far away.
Credit : ambcrypto.com
