Solana [SOL] faces pullback retest at $20: Is a recovery likely

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Solana [SOL] bulls have successfully defended the $20 support throughout Q1 2023, except during the US bank run in mid-March. The US bank crisis saw it drop below $20, but rebounded at $16. However, SOL faced rejection at a key trading value of $23 and retreated to the $20 demand zone, which could offer bulls a lifeline. 

Read Solana’s [SOL] Price Prediction 2023-24

At press time, the Solana network continued to face increased competition. One of the most popular NFT collections on the network, y00ts, dumped it for Polygon [MATIC] . Similarly, the adjusted TVL on the chain has dropped from $400M in January to $144M as of 31 March, according to DappRadar. 

Source: SOL/USDT on TradingView

SOL has been oscillating in the $20 – $26 range for the past three months. A false breakout in mid-March saw bulls push it back to the range. At press time, SOL operated in the lower range ($20 – $23). A previous pullback retest didn’t end up in a rally, which could call for patience after Bitcoin [BTC] dropped below $29k, heading into the weekend. 

SOL could rebound strongly if BTC reclaims $29k and offers new buying opportunities if bulls could defend the $20 support. However, bulls must clear a key hurdle at $21.25 to retest the Volume Profile Visible Range’s (VRVP) point of control (POC) of $23. This level is also a key sell pressure level that bulls must overcome to reach $26. 

A close below $18 could attract more bears and sink SOL to $16. The primary buying opportunity could exist at $20 if BTC surges. A second buying opportunity could open up if SOL rebounds at $16. 

The RSI