28. September 2023

Solana Bears on the Move: Fed Decision Could Ease Drop

• Solana (SOL) is facing a pullback after reaching a new 2023 high of $32.
• Bears are expected to defend the 50% Fibonacci retracement level of $22.5, and bulls could re-target $30 if they can bypass the $26.5 obstacle.
• Open Interest rates have declined, indicating a dip in demand for SOL in the futures market ahead of the Fed decision.

Solana Price Analysis

Solana (SOL) threatens to record more losses ahead of the Federal Reserve’s rate decision on 25/26 July. After hitting a new 2023 high of $32, SOL’s price action had reversed part of its gains amidst a pullback.

Will 50% Fib Stop Sellers?

Fibonacci retracement levels (yellow) were plotted between the recent high of $32 and mid-June’s swing low at $12.8. At this time, Solana was trading around $24 but bulls were expecting it to hold at least at the 50% Fibonacci level near $22.5 where June highs also coincided with this support line.

Open Interest Rates Decline

Open Interest rates declined which indicated that there was decreased demand for SOL futures ahead of the Fed meeting. This was further confirmed by SOL’s OI dropping from >$400 million to <$350 million between mid-July and present.

Relative Strength Index & On Balance Volume Retreat Lower

The Relative Strength Index and On Balance Volume had both retreated lower which showed that buying pressure had weakened.