• Solana [SOL] was pushed below the $20 psychological level due to selling pressure.
• Bulls attempted to defend the $20 support but were unsuccessful.
• Open Interest data indicated more bearish pressure in the future.
Solana Flips $20-Level to Resistance
Solana’s [SOL] bearish woes continued, as selling pressure saw price plunge below the $20 psychological level on 8 May 2021. Despite bulls mounting a strong defense of the level for two weeks, it eventually caved to the bearish momentum and introduced further lows with SOL trading at $19.26 as of press time.
The Relative Strength Index (RSI) remained under neutral 50, suggesting lack of buying pressure while On Balance Volume (OBV) stayed flat and Chaikin Money Flow (CMF) hovered above zero line, indicating indecision by traders on capital inflows for SOL. On a four-hour timeframe, price briefly bounced off the minor support zone at $18.86 over past two days before continuing its downward trend again.
A bullish rally for Solana might be triggered by Bitcoin surging towards $30k again or else bulls might need to wait for price to reach next major support level at $16.66 before attempting a significant reversal. Currently 1 SOL is worth 0.001733 USDT, 10 SOLs are worth 0.017331 USDT and 100 SOLs are worth 0.173304 USDT according to CoinMarketCap data at press time..
Open Interest Data
Open Interest (OI) data on Coinalyze suggested that Solana could experience more selling pressure in near future due to high levels of OI observed during this period compared to previous months when OI hovered around low levels despite higher prices being seen on chart then compared now with lower prices now being observed on chart during same period of time as earlier mentioned months when higher prices were observed then than current levels now being displayed by charts .
In conclusion, despite brief respite from bearish trend seen in past two days with price bouncing off minor support zone at 18:86, analysts predict that overall bearish trend will continue unless BTC reaches new highs and triggers bullish rally for Solana or else bulls have wait until next major support level is reached at 16:66 before attempting another meaningful reversal attempt as currently prices remain below 20$ Psychological level .