- Solana saw a bearish continuation setup following its latest breakdown.
- The token’s funding rate slightly improved in all exchanges, though still negative.
The FTX crisis saw Solana’s relationship with Sam-Bankman Fried catalyzing the token’s more than 60% slump within a few days. As a result, Solana plummeted under the crucial $27 – $30 range, dipping into a somewhat low liquidity region.
Solana’s funding rates reflected eased selling momentum within the past few days. While writing these lines, SOL changed hands at $13.4, losing more than 3.57% within the previous 24 hours.
Can Buyers Keep Rejecting Lower Prices?
Solana’s plunge from the $27 value area initiated a massive bearish move that saw sellers retesting the baseline at $12.8 within the previous week. Meanwhile, Solana’s southbound tendencies printed a bearish pennant setup on its 24hr chart.
Moreover, bulls should safeguard the $12.8 level to erase the heightened bearish volatility break to avoid a breakdown. Meanwhile, buyers can reflect increased momentum to reject price dips at the nearest support.
That may see SOL gathering some strength to hit $17 in the upcoming sessions. Nevertheless, the broader market sentiment might see the token stretching its ongoing bearish phase. An eventual or immediate plunge beneath $12.8 might print a shorting sign.
The RSI (Relative Strength Index) extended its actions within the oversold level for almost seven days. A substantial reversal from this mark can see SOL buyers easing the selling momentum. Moreover, the 24hr losses on Solana’s charts saw trading volumes plunging. That made the alternative token more fragile and prone to reversals.
Funding Rates Outlook
Coinglass data shows Solana’s funding rates hovered in the ‘negative’ regions in all exchanges over the past day. Though it noted some improvements, buyers may have to wait for positive closing on most crypto exchanges to measure the altcoin’s revival chances.
Possible targets would stay as highlighted above. Lastly, SOL enthusiasts should watch Bitcoin’s movements to make profitable bets. While writing these lines, the crypto market tried to recover from the latest fall, though bears remained visible.
For instance, Bitcoin gained 112% over the past day and lost 0.49% within the previous hour. The leading crypto changed hands at $16,710.03 during this writing.