Is Solana ready for a breakout? Buyers may be eyeing a new ATH IF…
Shift in spot taker volume in favor of the bulls, and the cup and handle pattern, are all bullish signs for Solana.
- Solana might threaten to break out beyond the $180 resistance soon
- Spot volume seemed to be leaning in favor of Solana’s buyers too
At the time of writing, Solana [SOL] formed a cup and handle pattern and threatened a breakout past the handle pattern in the coming weeks. A breakout from this pattern would likely be explosive and lead to SOL setting new all-time highs on the charts.
In the meantime, the bulls continued to stumble at the $180-resistance level. The last few days’ price action saw the coin face rejection at $180. Like the rest of the altcoin market, the token’s bullish momentum has weakened over the past two weeks too.
In a recent report, it was highlighted that SOL saw capital inflows. This was corroborated by the price chart. The CMF indicator saw positive capital inflows. And, the OBV noted that despite the rejection at resistance, the selling pressure did not get overwhelming.
The moving averages also underlined bullish momentum. In fact, AMBCrypto found that buyers could soon have the strength to drive the price beyond the $180-level.
Solana bulls trying to seize control of the market?
The spot average order size can be calculated by dividing the total trading volume by the number of trades executed. A jump in whale activity, when high volume and low trade counts occur, indicates a hike in whale participation.
If this occurs near significant long-term demand zones, it can denote accumulation. On the other hand, whale activity during a rally or when the price reaches significant milestones could allude to selling from large holders.
Over the past couple of weeks, whale activity has not spiked higher, despite the bulls’ insistent efforts to breach $180. Hence, whales may be likely anticipating further price gains.
Finally, the spot taker CVD has been neutral for most of May. On 25 May, the metric flashed the signal that taker buy volume was dominant. This was just a start though, and a sustained trend of taker CVD being buyer dominant would be necessary to indicate that a strong rally will follow.
The last time the metric turned buyer dominant was in mid-November, when Solana climbed above the same $180-level. This followed a nine-month range formation under this critical resistance.
