Odds of a Solana rally in the coming weeks are…
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The H4 price chart of Solana underlined bullish strength.
- The coming week could be green but there was evidence that supported the idea of SOL facing a dip.
A previous analysis report pointed out that Solana [SOL] was trading above the key level at $18.7. At that time bullish strength was not clear on the higher timeframes but the lower timeframe chart was firmly bullish. The buyers maintained their momentum over the past two days.
Read Solana’s [SOL] Price Prediction 2023-24
At the time of writing SOL prices were beneath the $22.3 key level. A move above this mark would flip the daily structure to bullish, which could result in a Solana rally in the coming weeks. For traders looking to build swing positions, patience could be vital.
The daily lower high could pose significant resistance to the Solana bullsOn the 4-hour chart, Solana showed strong bullish momentum in the five days. Back in late June, the price had burst past the resistance and daily bearish order block in the $18.5 zone. After it was flipped to support and retested, demand began to swell.
This drove Solana toward the $22.3 level over the past three days. The OBV was evidence of the rise in demand as higher buying volume pushed prices higher. The market structure and trend on the 4-hour chart were firmly bullish.
Yet, that does not mean a breakout past $22.3-$22.5 was imminent. After the sell-off in mid-May, SOL pumped to this region before reversing its trend with a vengeance. Hence it was likely that sellers would defend this level dearly. Therefore, SOL traders must be prepared for the possibility that SOL can form a range between $22.3 and $19.9 or even $18.5. On the other hand, a breakout and retest of the $22.3 would be a welcome buying opportunity for swing traders.
The short-term weakness of the Open Interest gave bears an advantageWhile the 4-hour price action highlighted bullish strength, the 1-hour Open Interest chart spelled bears could be in the ascendancy. Over the past 18 hours, the OI has begun to dip. Meanwhile, SOL prices saw a pullback to $21.42 but rebounded to $22.25 at press time.
Realistic or not, here’s SOL’s market cap in BTC’s terms
Despite the rebound the OI continued to stay flat, showing disinterested bulls and a possible shift in momentum. Combined with the resistance at $22.3, this finding suggested Solana prices could see a pullback. However, the spot CVD remained positively sloped over the past two days to highlight sturdy demand for the token.