Solana bears get burned if SOL fails to break down
|- Solana price faces sixth consecutive day of lower closes.
- Late bear traders may get burned if they are short at $150.
- Final daily Ichimoku support is coming up.
Solana price has moved lower by as much as -30% over the past six trading days. As the pullback from new all-time highs continues, Solana is entering into established median pullback ranges in cryptocurrencies. As a result, shorts attempting to enter the market near the $150 may find themselves on the losing side of a runaway market.
Solana price closes in on the final daily Ichimoku support level
Solana price is getting close to the final support level in the Ichimoku system: the Kijun-Sen. The Kijun-Sen is currently at $141.25 and is in a position to trap any late short-sellers who decide to short if Solana fails to hold $150. The Kijun-Sen is the primary 'day trader' indicator in the Ichimoku system. It represents medium-term movement and is easily thought of as a dynamic 50% Fibonacci retracement level. Support and resistance are often found against the Kijun-Sen. It is for that reason any new short positions may be under threat. A factor contributing to the Kijun-Sen holing as support is the extreme low in the Composite Index - it is approaching historical support levels.
SOL/USDT Daily Chart
Bulls should not be overly confident, though. The Relative Strenght Index has yet to hit the first oversold condition in a bull market (50) and given the current Solana price action, a move below the Kijun-Sen may be necessary. The weekly Tenkan-Sen and Kijun-Sen fall share a price range between $115 and $120. Solana will likely need to push beyond the daily Kijun-Sen for the Relative Strenght Index to test 50 or 40. A move to the $115 - $120 value area will put the Optex Bands into an oversold condition, helping to confirm a bottom.
Any daily close above $175 will invalidate any further bearish momentum.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.