SOL take a cue from Bitcoin’s sideway structure – Here are the levels to watch out for
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Solana [SOL] has aggressively defended the $20-support for the past few days. However, the price action hasn’t moved beyond $21.50 since the end of March, setting into a consolidation range below a multi-week descending line.
Read Solana [SOL] Price Prediction 2023-24
At press time, Bitcoin [BTC] also oscillating between $26.8K and $28.8K. Since SOL has taken a cue from BTC’s sideways structure, an extended BTC consolidation could also tip SOL’s range trading to persist.
Source: SOL/USDT on TradingView
At the time of writing, near-term bears seemed determined to clear the 50 MA (Moving Average) of $20.81, which could lead to increased sell pressure in the short term. On the other hand, the price action was below the 200 EMA (yellow line), which has been moving in a straight line for the past few days. It revealed a likely extended consolidation phase in the mid/long term.
The declining ADX (Average Directional Index) further reinforced the consolidation thesis, which suggests a possible consolidation or retracement. However, the RSI (Relative Strength Index) was slightly below the 50-mark – A neutral position which underlined that the price could go in either direction.
Therefore, SOL could breach below the channel’s middle level of $20.65, especially if BTC drops below $28K and moves back to the $27K-zone. The channel’s lower boundary of $20 could check the drop and offer potential new buying opportunities if the support is retested.
However, a BTC surge above $28K could set SOL to target the channel’s upper boundary of $21.31. However, bulls must deal with a
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