- Solana has a bullish structure after its deep retracement.
- A retest and rally is expected in the coming weeks, marking the former resistance as a “buy” zone.
As a researcher with experience in analyzing cryptocurrency markets, I believe that Solana (SOL) is exhibiting a bullish structure after its deep retracement. A retest and rally are expected in the coming weeks, marking the former resistance at $160 as a potential buying zone.
Solana [SOL] broke out past the $160 resistance zone and cleared the imbalance above the month-long range. In doing so, it asserted the previous higher timeframe uptrend.
The $160 area would likely serve as support going forward.
A recent analysis by AMBCrypto revealed disappointing social statistics, yet Ethereum [ETH] managed to outpace Bitcoin [BTC] in generating daily income.
Are the bulls strong enough to sustain the rally?
As a market analyst, I observed that the overall market trend remained bullish throughout April, even though there was a dip in prices down to $122. However, upon closer examination, the internal market structure appeared bearish during this time. But once prices broke above $160 and closed there, the bearish signs were reversed and the market structure became bullish once again.
The RSI on the daily chart also climbed convincingly above neutral 50 to highlight upward momentum.
As a crypto investor, I’ve noticed that the On-Balance Volume (OBV) didn’t manage to surpass a significant resistance level at $160, despite it being an important local threshold. Surprisingly, the trading volume declined during this period, which was unexpected given the historical significance of this resistance level.
As an analyst, I’ve noticed that the volume indicators have raised some red flags for potential buyers. It’s likely that we’ll see a retest of the $160-$165 range as a possible support level in the future. This could present a good buying opportunity.
The Fibonacci extension levels at $210 and $236 are the next targets.
Bullish speculation spurs SOL higher
In the past week, the Open Interest chart has surged over $400 million higher, indicating a significant increase in bullish sentiment among traders in the futures market, as evidenced by the bullish price breakthrough.
Read Solana’s [SOL] Price Prediction 2024-25
The spot CVD was also in a strong uptrend in the past two weeks.
Despite the apparent hurdles identified by the Opening Base Value (OBV), the robust demand in the spot market kept the current rally going strong. Consecutive and moderate short liquidations served to intensify the price surge.
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2024-05-20 16:07