• SOL shrank 9% in the last 24 hours due to falling open interest rates and a stock market rout.
• Macroeconomic uncertainty is increasing as Fed watchers worry about inflation.
• SOL has struggled to break above the $27 hurdle, with bears targeting the 50% Fib level at $22.53 or lower.
SOL Shrinks 9%
The price of Solana [SOL] fell by 9% in the last 24 hours due to falling open interest rates and a stock market rout, prolonging its downtrend. The recent momentum in equity markets has also slowed as most indexes closed in the red on Tuesday. Bitcoin [BTC] is trading at $23.97k, sending altcoins into retracement too.
Macroeconomic uncertainty is increasing as Fed watchers worry that its aggressive rate hikes to tackle stubborn inflation will continue for longer. So far, SOL has failed to break above the $27 hurdle – a major selling pressure even in the three-hour time frame – resulting in it retesting the 50% Fibonacci level at press time.
Fibonacci Level & RSI
Given this market rout, bears could benefit more if they can break through this 50% Fibonacci level and target either 38.2%, 23.6%, or 17%. However, bulls could target an overhead resistance at $27 if BTC hits $25k again and these levels prove stable; investors should pay attention to BTC’s price performance for clues about this possibility. Meanwhile, RSI currently sits at 50 which indicates a neutral structure that could move either way depending on whether bearish or bullish sentiment takes hold of the market first.
Open Interest (OI)
SOL’s open interest (OI) peaked on 21 February before declining thereafter, highlighting a prevailing bearish sentiment amongst traders when it comes to SOL’s future prospects Despite this unfavorable outlook, over $2 million worth of long positions have been liquidated in the last 24 hours; thus creating further leverage for short sellers and potentially pushing SOL down even further below its current levels if OI continues dropping after closing below $23 per token
Overall, macroeconomic conditions are contributing heavily to a bearish sentiment towards SOL’s future prospects while technical indicators may show some signs of hope for bulls if they can defend key support levels such as those provided by Fibonacci levels mentioned here; however traders should keep an eye on both BTC’s price action and OI figures when making investment decisions regarding SOL tokens