Solana (SOL) worth slips 6%, nearing the decrease finish of its consolidation vary at $76.45 on the time of writing on Monday. A agency shut under this degree suggests a deeper correction. The derivatives knowledge helps a bearish sentiment with SOL’s brief bets rising alongside damaging funding charges. On the technical aspect, if downside momentum continues, SOL might revisit its February 6 low round $67.50.
Solana’s derivatives knowledge reveals bearish bias
Solana’s long-to-short ratio reads 0.89 on Monday, nearing the bottom degree over a month, based on CoinGlass knowledge. This ratio under 1 signifies bearish sentiment as merchants are betting on the asset worth to fall.
As well as, the funding rates for SOL additionally help a bearish outlook. CoinGlass knowledge reveals SOL’s funding charge flipped damaging on Saturday and at the moment stands at -0.0245% on Monday, nearing the extent seen through the February 6 worth dip. This damaging charge signifies that brief positions are paying lengthy positions and hints at bearish sentiment.
Solana Worth Forecast: SOL might lengthen additional losses if it closes under the help zone
Solana’s worth corrected practically 4% within the earlier week, extending its six consecutive weeks of losses since mid-January. Solana worth began the week on a damaging observe, buying and selling 6% down, nearing the lower consolidation boundary at $76.45.
If SOL closes under the decrease consolidation boundary at $76.45 each day, it might lengthen additional losses toward the February 6 low at $67.50.
The Relative Energy Index (RSI) reads 31, pointing downward toward the oversold situations, indicating bearish momentum gaining traction. The Shifting Common Convergence Divergence (MACD) strains are converging, indicating indecisiveness amongst merchants.
Nonetheless, if the decrease consolidation boundary at $76.45 holds as help, it might lengthen the restoration toward the higher consolidation zone at $89.38.
