Solana is trading near $14, but here’s why a move towards $15 might not be a good idea.

Solana bulls have been repeatedly driven back from the $15 resistance zone since mid-November. The technical indicators did not yet indicate strong upward momentum or significant buying pressure behind SOL.

A recent article discussed why the $15 mark was so important. We’ll look at how short sellers can trade SOL and how this bearish notion can be debunked.

 

The H4 bearish breaker was not yet breached and could offer a selling opportunity

Solana seeks to breakout past the $15 mark but sellers remain strong

Source: SOL/USDT on TradingView

On the four-hour chart, the Relative Strength Index (RSI) fell below neutral 50 to stand at 44 at press time. However this did not show a downtrend in progress. Meanwhile, the On-Balance Volume (OBV) has been flat over the past two weeks as well. The Chaikin Money Flow (CMF) was at -0.05, and any move lower would be an indication of significant selling pressure in the market.

The price action on the lower timeframes such as one-hour showed a lack of a definite trend. Solana bounced between the $13.14 and $15 values since 23 November, with two individual drops to the $12.8 level.

At the time of writing, Bitcoin ventured to the $16.7k mark but quickly moved upward as demand crept in. Further gains and a move past $17k could see SOL register gains as well. Yet, based on SOL’s chart, a shorting opportunity was more evident.

This was because of the confluence of a bearish breaker on the 4-hour timeframe alongside the range highs at $15. The $14.5-$15 area can be used to enter short positions. Invalidation of this idea would be a four-hour session close above $15.6. Meanwhile, to the south, the $13.15 and $11.3 levels can be used to take profit.

Futures traders were unenthusiastic about SOL breakout prospects

Since 24 November, the Open Interest behind Solana has waned. Even though SOL has tested the bearish breaker multiple times and the price consolidated beneath the $14 mark in the past two weeks, OI has declined from $298 million to $217 million.

In the event of a breakout past $15, the OI would likely see a large move upward. This could warn sellers that the bearish winds have shifted.

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