Solana is currently facing significant challenges in its trading journey, grappling with the inability to reclaim a crucial point of control within its trading range. This struggle has led to weak rejections and an indication of bearish compression, contributing to the critical question: will Solana dip below $90 first, or will it successfully navigate its way back to reclaim point of control resistance?
As it stands, Solana’s price action reflects an effort to build a foundation for recovery. However, this bullish momentum seems to be restrained by its failure to regain this key volume zone where the majority of recent trading activity has occurred. This missed opportunity has turned the previously sturdy support into a formidable resistance, tightening price action and paving the way for potential further declines.
- Critical Support at $89: The support level at $89 holds significant importance as it sits just below the psychological threshold of $90. This region is not only crucial for a swing failure pattern but also for any potential reversal triggers.
- Liquidity Dynamics: Market structures often seek liquidity, and the area below $90 is expected to be saturated with stop orders from traders who entered positions between $100 and $130.
- Potential for a Reversal: If the price can reclaim the point of control decisively, it would invalidate the bearish sentiment, suggesting a bullish rotation could follow, potentially leading Solana back toward the price range of $178–$252.
Currently, Solana’s rejection at the volume point of control creates a delicate situation for traders. Until reclaimed, this bearish setup leaves the market in a defensive stance. Watching closely for market movements at the $89 level is crucial, as a sweep of this low alongside a defined swing failure pattern could herald a notable reversal and offer a long entry opportunity.
In summary, Solana’s current trading landscape reveals an uneasy balance of support and resistance. If traders anticipate a liquidity grab below $90, they should remain vigilant for signs of reversal. Conversely, a noted reclaim of the point of control could signal a shift towards bullish continuation. It’s imperative for traders to employ careful price action analysis and manage according to their trading strategies in this dynamic environment.
