Key  takeaways

• Solana’s SOL is down 1% in the last 24 hours and is approaching $160 after dropping to $146 on Tuesday.
• The cryptocurrency could reclaim the $170 high if the recovery continues.

SOL recovers from the Tuesday dump

SOL, the native coin of the Solana ecosystem, is trading close to the $160 mark after recording massive losses on Tuesday. The coin dipped to the $146 mark on Tuesday, sweeping the low of August 4th before embarking on a recovery.

It has now added nearly 5% to its value over the last few hours and is now trading at $159 per coin. The positive performance comes as the broader cryptocurrency market recovers from the dump.

Bitcoin briefly dipped below $100k on Tuesday but has now recovered and is trading above $102k per coin. Ether is also trading above $3,300 after testing the $3k psychological level.

SOL could rally to $170 amid market recovery

The SOL/USD 4-hour chart is bearish and efficient as the cryptocurrency has underperformed in recent days. The technical indicators remain bearish but are showing signs of recovery. 

The 4-hour RSI of 32 means that SOL is currently in the oversold region. This could give it a breather and allow the coin to rally higher in the near term. The MACD lines are also within the bearish region, suggesting selling pressure.

If SOL continues its recovery, it could rally towards the first major resistance level at $170 over the next few hours. An extended bullish run would allow the cryptocurrency to target the swing high at $188.

However, if the bulls fail to defend SOL’s price above the $150 psychological level, the cryptocurrency could dip towards the June 27 low of $136. Currently, the trend is switching bullish, and buyers could regain control of the market. If the daily levels hold, SOL could rally higher over the coming hours and days.

Bitcoin price threatens to sweep new lows before the next substantial recovery above $30,000, especially with the economic events investors are anticipating this week. The most prominent crypto continues to struggle with mounting bearish pressure but with the bulls’ adamance about selling, its downside has been limited to support around $29,000.

How To Prepare Amid A Glaring Bitcoin Price Sell-Off

Bitcoin price holds slightly above $29,200 with the 50-day Exponential Moving Average (EMA) (red) acting as resistance at $29,360. Although support at $29,000 is holding steadily, the technical picture is leaning heavily toward the bearish side.

A sell signal from the Moving Average Convergence Divergence (MACD) implies that sellers have the upper hand and that the path with the least resistance is southbound. If losses are sustained below the immediate support, short positions in BTC may turn profitable toward $28,000 with a further drop to $25,000 becoming apparent.

Most analysts anticipated declines to dominate the Bitcoin market toward the end of the week, especially with the United States Federal Open Market Committee (FOMC) deliberating on a possible interest rate hike on Wednesday.

“With all the upcoming events, I wouldn’t be surprised we’ll sweep the lows on #Bitcoin first before we’ll reverse back up,” Michaël van de Poppe told his over 661k followers on Twitter.

In addition to the FOMC deliberation of a possible 25 basis point hike, reports on the real GDP and Personal Consumption Expenditure (PCE) are just as important events to look forward to on Friday.

With all the upcoming events, I wouldn’t be surprised we’ll sweep the lows on #Bitcoin first before we’ll reverse back up.

Tonight might not be the most important thing, GDP and PCE are just as important. pic.twitter.com/1zYSdhXhy5

— Michaël van de Poppe (@CryptoMichNL) July 26, 2023

Captain Faibik, another analyst believes Bitcoin price may continue to move above a long-term trendline on the daily chart. Meanwhile, the Bollinger Bands on the weekly timeframe “shows all-time low-price volatility.”

Investors should be cautious as major breakouts tend to occur following “deep silence” in the crypto market.

$BTC Still Moving above the Major Trendline on the 1D TF Chart.

Bollinger Bands (Weekly) Shows All time low Price Volatility.

Deep Silence #Crypto #Bitcoin #BTC pic.twitter.com/tbBFsnbLuP

— Captain Faibik (@CryptoFaibik) July 26, 2023

A break below the trendline as presented by Faibik implies the possibility of a massive sell-off to $28,000 and $25,000, respectively.

Is An Uptrend in Bitcoin Price Viable?

For now, the path with the least resistance is to the downside. Moreover, this situation appears to be worsening with everyday BTC holds below $30,000. The Relative Strength Index (RSI) on the daily chart reinforces the bearish grip as it slides below down in the neutral zone, and closes in on the oversold region.

Watching the behavior of Bitcoin whales is another strategy both experienced and novice traders can apply to stay profitable in a tradable condition such as the ranging channel between $28,000 and $32,000.

According to Glassnode, an on-chain analytics platform addresses with between 1,000 and 10,000 BTC have been capitalizing on the gradual retracement in Bitcoin price to up their balance by approximately 33,800 BTC.

A similar trend was noticeable with whales with more than 100,000 BTC, whose holdings ticked by 6,600 BTC. Despite these efforts, Glassnode mentioned a “net reduction of -8.7k BTC,” caused by holders of between 10k and 100k BTC reducing their balance by 49,000 BTC.

Overall, the net selling pressure is marginal with Bitcoin price likely to keep trading in the range, unless the FOMC or other economic events mentioned earlier trigger a selloff.

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John is a renowned crypto analyst and journalist, providing expert insights into both broad and focused aspects of the digital asset market. As a steadfast reporter, he keeps his audience updated with the latest news in the crypto sphere, delving into topics such as price trends, on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the ever-evolving metaverse.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.