Solana Bears Take Control: Will Bulls Defend $20 Support?

• Solana (SOL) has been in a bearish trend since early August.
• The bulls have been struggling to defend the $20 support zone and a break below this could lead to a 15% fall.
• Technical indicators are displaying bearish momentum, suggesting that SOL prices could fall to $16.94 if the support is breached.

Solana’s Bear Market

Solana (SOL) has been in a strong bearish trend throughout August, with buyers struggling to defend the key higher timeframe support of $20. If this level is breached, it could lead to another 15% decline for SOL prices, potentially taking them down as low as $16.94.

Technical Indicators Show Bearish Momentum

The 1-day chart showed that the market structure has been bearish since early August and that SOL was in a downtrend. The simple moving averages and RSI also reinforced this idea of bearish momentum, with the DMI showing a strong downward trend on the daily chart and both -DI (red) and ADX (yellow) above 20 points. Additionally, the OBV had slowly declined over the past two weeks while Fibonacci retracement levels suggested that 61.8% and 78.6% were potential support levels at $20.18 and $16.94 respectively.

Defending Key Support Zone Vital For Bulls

For Solana bulls to switch back into bullish momentum, they must be able to defend the key higher timeframe area of interest around $20-22 by keeping prices above $20.26 on daily closes for an extended period of time; otherwise, further losses may be expected in the coming weeks if this level is breached .

Recent Price Action

In mid-August there was significant selling pressure which saw SOL prices drop lower but they managed to bounce slightly up towards $20 again after bulls attempted to defend this key area of interest around $20-22 on 25th & 26th August briefly before dropping back down once more towards current levels at time of writing ($19).

Conclusion

Overall it appears that bears are still largely in control of Solana’s market structure although bulls remain determined to defend their key areas of interest near$20-22 – any failure here could lead to another 15% drop for SOL so traders should keep an eye out for further price action developments moving forward!