- Solana gave intensely bullish signals but the chances of a reversal can’t be overlooked.
- The OBV moving within a range was a sign that the bullish advance might slow down next week.
As a seasoned researcher with a background in technical analysis and cryptocurrency markets, I’ve closely monitored Solana’s [SOL] price movements over the past few months. Based on my observations, Solana has displayed intensely bullish signals, with its recent surge to the $176 mark being a prime example. However, the chances of a reversal can’t be overlooked, given the significant resistances overhead.
In simpler terms, the price of Solana (SOL) had reached a roadblock at around $170 in late May and early June, preventing further gains for buyers. However, according to recent analysis, it was predicted that Solana could potentially surge past this barrier and reach $176 due to a significant concentration of market liquidity in that area.
Based on my extensive experience in financial markets, I can tell you that a daily close above $175.6 would indeed be a bullish sign for the market. However, it doesn’t necessarily mean that we will see an immediate surge to $200 without any resistance.
The two key resistances overhead
As a market analyst, I have observed that the price range between $70 and $173 has played a significant role in the price action of Solana (SOL) since mid-March. Initially, this zone served as support for the cryptocurrency, providing a floor for prices to bounce back. However, it later transformed into resistance, preventing further upward price movements. Above this range lies the $190 level, which was where SOL reached its peak in mid-May before experiencing a downtrend throughout the summer.
Despite the overall downward trend, the Fibonacci levels indicated that the 78.6% level had been successfully defended. This finding maintained a bullish outlook for higher timeframes such as the weekly chart. The daily chart had already turned bullish following the break above the recent high of $154.
According to the RSI readings on a daily basis, bulls have been in control and it seems that the upward trend will persist. The On-Balance Volume (OBV) has also been trending upwards but must overcome the resistance from March’s late period before confirming a breakthrough above the $170 and $190 price thresholds.
Solana speculator sentiment is firmly bullish
Over the past week up until the 10th of July, there has been a significant increase in both price and open interest. The bullish sentiment was particularly strong during this period, with open interest reaching approximately $2.4 billion. This figure is comparable to the levels seen in April and early June.
While it is a positive sign, is does not guarantee a breakout.
The examination of the liquidation points indicated that the $164.6 area could have been where a price turnaround occurred. However, prices unexpectedly surged further ahead, emphasizing the robustness of the bullish trend.
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A similar scenario might occur at the $177 and $185 liquidity pools.
In simpler terms, the price may experience a decline at this stage due to the potential exhaustion among buyers, with a significant volume of sell orders waiting in the wings.
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2024-07-22 02:15