Solana [SOL]: Bulls and bears tussle for this key level

ambcrypto.com:

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

Solana [SOL] recovered strongly in the past few days. It appreciated over 40% after seeing aggressive demand at the lows of $16 on March 10. It broke above its previous high of $21.94 but hit a price ceiling of $22.94, setting it for a retracement. 

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At press time, Bitcoin [BTC] struggled to maintain the $27K zone. Any drop below $27K could push SOL to breach key support, while a surge beyond $27K could give bulls slight hopes of defending the crucial support. 

Source: SOL/USDT on TradingView

SOL saw increased demand at the discounted levels of $16, setting it for the first leg of recovery. But the first phase of recovery faced a rejection at $21.94, sinking SOL to $19.06. The second leg of recovery inflicted a bearish breaker, pushing SOL beyond the bearish order block at $21.94. 

However, the recovery hit the price ceiling of $22.94, attracting bears who sank SOL to $21.27. At press time, SOL oscillated in the lower range of $21.27 – $21.94.

The lower range price action could give bears more leverage if BTC breaks below $27K. It could tip short-term bears to pull SOL to $20 if SOL closes below $21.27. Far south, $19, $18, and $17 are key support levels that could slow the drop. 

Alternatively, SOL could increase to its upper range of $21.94 – $22.94 and surge upwards if BTC increases beyond $27K. Other key resistances above the overhead obstacle of $22.94 were $24 and $25. 

The Relative Strength Index (RSI) retreated from the overbought territory and fluctuated slightly above the mid-point of 50. It