Can Solana bulls drive prices past $20?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The higher timeframe chart of Solana outlined $22.3 as a key level to watch out for.
- The near-term trend of Solana was bullish and the bounce from $18.5 could go past $21.3 if buying pressure increases.
Solana [SOL] fell to a low of $12.8 on 10 June. From that point to the time of writing, SOL has gained close to 53% in value. On the lower timeframe price charts, the trend and market structure of the token were firmly bullish.
Read Solana’s [SOL] Price Prediction 2023-24
But the 1-day chart showed there could be some complications near the $22 mark.
Bitcoin [BTC] also had a higher timeframe bullish bias, but it was stuck within a lower timeframe range, with the possibility of a dip to $29.5k. If, instead, BTC bulls could drive prices past the $31.6k-$32k region, SOL bulls would very likely prevail and force a strong performance on the chart.
The higher timeframe Solana downtrend was not yet broken, but the bulls were dominant in recent weeks
On the 1-day chart, Solana has had a bearish trend since late February. Despite the rally to $26 in mid-April, the bulls could not halt the lower highs and lower lows that SOL has formed since the January rally. On the other hand, the market structure of SOL on the daily timeframe was bullish after its move above $17.8 on 29 June.
While this can sound contradictory, the inference is that SOL was still in a higher timeframe downtrend. The recent rally must break out past $22.3 before an uptrend on the daily timeframe can be said established.
The RSI showed bullish momentum, but the OBV could not breach a local resistance (orange). This showed some weakness from the buyers. On the price action side, things were going well for buyers. The bearish order block at the $18.7 area was broken and flipped to a bullish breaker.
SOL prices were likely to climb higher, but the lack of activity on the OBV suggested bulls could falter. If that occurs, the $20.5 and $21.31 levels could reject SOL bulls in the coming days, at least temporarily.
The Open Interest and the rising prices showed that market sentiment was firmly bullish
The Open Interest chart from Coinglass was set to a 1-day resolution, meaning each candle represented a day. Since 20 June, the Open Interest had climbed higher alongside prices. This showed speculators possessed bullish convictions.
Realistic or not, here’s SOL’s market cap in BTC’s terms
The slight slump from 3 July came alongside a pullback from $19.8 to $18.5.
The price action and OI chart showed that the sentiment was firmly bullish in the past two weeks. The buying pressure was not as solid, but if Bitcoin were to climb higher, SOL’s good performance could continue.