Solana: Bulls prepare for move to $20
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Solana presented differing biases on the 1-day and 4-hour price charts, but bulls had the advantage on the lower timeframes.
- This could see SOL rally to $19-$20, but the evidence did not yet support further gains.
Solana [SOL] was in a short-term uptrend after the bulls forced a breakout past the $16 resistance. Yet the higher timeframes were not strongly bullish. This suggested that SOL bulls could stall near the $20 resistance.
How much are 1,10,100 SOLs worth today?
Notably, Tether’s [USDT] Dominance has fallen off a cliff over the past ten days. This came hand in hand with a rally across the crypto market. Bitcoin [BTC], in particular, experienced the lion’s share of the gains, as evidenced by the rising Bitcoin Dominance trend.
The H4 candle wick to $16.1 showed buyers still had the upper hand
On the 4-hour chart, Solana has registered a series of higher lows since 15 June. It also broke past a recent lower high on 21 June to break the bearish market structure. The subsequent higher high and higher low have initiated an uptrend on the H4 chart.
Yet, the daily chart remained firmly bearish. The $18.66 and $22.3 are important levels for the bulls to breach on the 1-day chart. Meanwhile, the H4 chart showed strong resistance in the $18.66-$19.3 zone. A bearish order block was seen in this area, highlighted in red.
Hence, a move into this resistance was likely, based both on the structure and the momentum of the past week. The OBV has also risen past a local resistance. Thus, buying pressure could propel prices higher.
Whether Solana bulls meet a reversal near the $20 sector remains to be seen.
Sentiment shifts to bullish as SOL bulls try to keep the rally going
On 22 June, when the price of Solana slipped lower from $17.4 to $16.8, the Open Interest descended by close to $19 million. This showed discouraged bulls and bearish sentiment.
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The OI and the prices have posted a recovery since then, and the short-term sentiment appeared bullish once more. Yet, the move upward might not occur over the weekend but could take till Monday’s trading session to resume.
The funding rate had been negative during the dip, but climbed into positive territory once more.