SOL Price Prediction: Bears Could Push SOL Below $20 as Recovery Fails
• SOL’s market continued to weaken, with the Funding Rate fluctuating as development activity declined.
• Bears have been attempting to re-enter the market after a failed bull recovery, with short sellers targeting potential gains at $20.35.
• Development activity has declined, while sentiment has improved but remains negative – something which could be reflected in further drops in demand.
Solana [SOL] Price Analysis
Descending line prevented a successful recovery
The Funding Rate fluctuated as development activity declined and Solana’s [SOL] value dropped significantly from $27 to $20 before bulls attempted a recovery that was ultimately rejected at the descending line (orange, dashed). At the time of writing, bears are looking for opportunities to re-enter the market, seeking chances to sink SOL’s price toward $20.35 if it closes below the trendline ($21.48). Near-term bulls could look for gains at the 23.60% Fib level of $22.95 or 50-period EMA (exponential moving average) of $22.15 if they clear above this key resistance point.
Funding rate and sentiment
According to Santiment, SOL’s development activity declined gently over the past few days however there was an announced mitigation plan following a network glitch which helped soften investors‘ stance on the native token. The weighted sentiment improved significantly but remained negative meaning there is still bearishness in the market – something that could be reflected by further drops in demand as shown by the Funding Rate.
Key support and resistance levels
The RSI (Relative Strength Index) hovered below 50 indicating bears‘ leverage in and OBV (On Balance Volume) declining significantly limiting any buying pressure and strong recovery attempts. Short sellers could target potential gains at $20.82 and $20.35 while near-term bulls should look for chances to push SOL towards resistances at 38.2% Fib level ($22.95) or 50% Fib level ($2375) if they can clear above 50 period EMA ($2215).
Investors interested in making profits out of their investment can check out Solana’s Profit Calculator which helps calculate profits based on current prices.