SOL Remains Resolute
At the time of writing, SOL exchanged hands at $18.28, on the back of increased selling pressure as shown by the 4-hour chart. Since September 8, SOL has attempted to rise into the $20 region. But the resistance at $19.58 ensured that it did not.
Little did bulls know that sellers had other plans to plunge the price to $18.16. However, the Accumulation/Distribution (A/D) line had risen to 15.17 million. A rising A/D trend alongside a decline in price suggests a weakening seller strength. Hence, this divergence signals increased demand, meaning SOL’s value could stabilize.
However, it is likely that the A/D will lose hold on the upward momentum if FTX finally liquidates. As a result, SOL may drop as low as $15.
Another Incoming Dip for MATIC?
MATIC’s market structure was also similar to SOL. At press time, widespread sell-offs had caused MATIC to fall to $0.52. Also, previous attempts to rise to $0.55 have been met with rejection at $0.54 at different times.
Furthermore, there was a difference between the SOL and MATIC conditions on the charts. While SOL had some form of demand, MATIC did not. As per indication from the On Balance Volume (OBV), MATIC’s volume pressure was decreasing.
Typically, a rising OBV could lead to higher prices. Therefore, the falling OBV in MATIC’s case reflects another possible move in the downward direction.
In conclusion, MATIC could fall below $0.50 irrespective of FTX’s liquidation period. It may also get worse for the token after the exchange liquidates. But SOL may continue to consolidate around $18 unless FTX sells off the token very soon.